- 24 -
Congress also adopted another method in the 1978 Bankruptcy
Reform Act for providing a “fresh start” to debtors coming out of
bankruptcy, namely, allowing debtors in bankruptcy to retain
after bankruptcy certain property classified as exempt property
for purposes of title 11 (title 11 exempt property), which
includes property exempt from the claims of creditors under
applicable State law. See 1978 Bankruptcy Reform Act, Pub. L.
95-598, sec. 522(b)(2)(A), 92 Stat. 2549, 2586, 11 U.S.C. sec.
522(b)(2)(A) (Supp. II, 1978);10 see also S. Rept. 95-989, supra
at 6. The role of title 11 exempt property in the Federal
bankruptcy laws is evidenced by, for example, the definition of
the term “insolvent” for purposes of title 11 that Congress
adopted in section 101(26) of the 1978 Bankruptcy Reform Act, 92
10Although there have been amendments to 11 U.S.C. sec.
522(b) as originally enacted that were in effect for the year at
issue, those amendments are not material to a resolution of the
issue presented here under sec. 108. See 11 U.S.C. sec. 522(b)
(1994).
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