Exempt Property Law and Legal Definition
Exempt property refers to a debtor's holdings and possessions that, by law, cannot be attached by a creditor to satisfy his/her debt. All other properties of the debtor that can be lawfully reached by the creditors is known as nonexempt property. In many states, homestead is exempted from attachment. Therefore, generally, a person's house and household items, up to a certain amount, is exempt from the liens of most creditors. The basic purpose of this exemption is to prevent debtors from becoming a total destitute.
