Exempt assets in bankruptcy are things you can keep. Each state allows for exemptions that you can apply to assets you own to keep them out of the bankruptcy estate. A common example of that is your homestead property in Florida. You can protect the equity in your home; that's an exempt asset. You can protect the equity in your vehicle up to a certain amount in bankruptcy. There are exemptions you can use to protect retirement accounts and the list goes on. Exemptions and selecting your exemptions when you file is a very important part of filing. That's why you need a qualified attorney to advise you on how to apply these exemptions.