Roderick E. Carlson and Jeanette S. Carlson - Page 24




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               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          522(b) as originally enacted that were in effect for the year at            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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