Depending on your state, exempt assets can include a home, life insurance, an annuity and tax-sheltered retirement accounts.

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In such a case, it is entirely possible that a court will surcharge the exempt assets towards payment of the debt.

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The Bankruptcy Court found that Marciano had failed to turn over his assets to the Bankruptcy Trustee, and failed to allow an inspection of his exempt assets.

FORBES: Marciano - Bankruptcy Debtor Gets Bench Warrant For Contempt After Impossibility Defense Flops