Under the Bankruptcy Code, states are allowed to use exemptions created by the state legislature, rather than the federal exemptions.

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The Bankruptcy Code allows states to use exemptions created by the state legislature, rather than the federal exemptions. States have their own bankruptcy exemptions and debtors are permitted a choice of using the state's exemptions. Often, the dollar amounts included in the state statutes will be a more accurate assessment of property values within each state, because state legislators are more flexible in such matters than members of Congress, who must consider property values across the entire country.

Under the Bankruptcy Code, States Are Allowed to Use Exemptions