^top
Federal bankruptcy exemptions not available in Alabama.
Alabama Homestead Exemption
Real property or mobile home to $5,000; property cannot exceed 160 acres (husband & wife may double)
75% of earned but unpaid wages; bankruptcy judge may authorize more for low-income debtors. (With respect to consumer loans, consumer credit sales, and consumer leases, 75% of weekly net earnings or 30 times the federal minimum hourly wage)
none (see wild card)
Clothes, family pictures and family books
$3,000 of any personal property, except wages (husband & wife may double)
^top
In Alaska, a debtor may choose State or Federal bankruptcy exemptions.
Alaska Homestead Exemption
Principal residence up to $70,200 (joint owners may each claim a portion, but total can't exceed $70,200)
Weekly net earnings to $456; for sole wage earner in a household, $716; if you don't receive weekly or semi-monthly pay, can claim $1,820 in cash or liquid assets paid any month; for sole wage earner in household, $2,860
Up to $3,900 worth of one vehicle, as long as the total value of the vehicle does not exceed $26,000.
Up to $3,900 worth of total personal property, including: clothing and household goods, books and musical instruments.
none
^top
Federal bankruptcy exemptions not available in Arizona.
Arizona Homestead Exemption
$150,000 for real property, an apartment, or mobile home you occupy to; sale proceeds exempt 18 months after sale or until new home purchased, whichever occurs first (husband & wife may not double)
75% of earned but unpaid weekly net earnings or 30 times the federal minimum hourly wage; 50% of wages for support orders; bankruptcy judge may authorize more for low-income debtors
Up to $5,000 ($10,000, if debtor is physically disabled)
household furniture & appliances to $4,000 (see ); food and fuel to last six months; $500 of clothing; health aids (see details for more)
None
^top
In Arkansas, a debtor may choose State or Federal bankruptcy exemptions.
Arkansas Homestead Exemption
For married person or head of family: unlimited exemption on real or personal property used as residence to 1/4 acre in city, town, or village, or 80 acres elsewhere; if property is between 1/4 to 1 acre in city, town, or village, or 80-160 acres elsewhere, additional limit is $2,500; homestead may not exceed 1 acre in city, town, or village, or 160 acres elsewhere (husband & wife may not double)
Earned but unpaid wages due for 60 days; in no event less than $25 per week
$1,200
Clothing, wedding rings (see wild card)
$500 of any personal property if married or head of family; $200 if not married
^top
Federal bankruptcy exemptions not available in California.
California Homestead Exemption
Real or personal property you occupy including mobile home, boat, stock cooperative, community apartment, planned development, or condo to $75,000 if single & not disabled; $100,000 for families if no other member has a homestead (if only one spouse files, may exempt one-half of amount if home held as community property and all of amount if home held as tenants in common); $175,000 if 65 or older, or physically or mentally disabled; $175,000 if 55 or older, single, & gross annual income under $15,000 or married & gross annual income under $20,000 & creditors seek to force the sale of your home; forced sale proceeds received exempt for 6 months after; separated but married debtor may claim homestead in community property still occupied by other spouse. (Husband & wife may not double)
Minimum 75% of wages paid within 30 days prior to filing
Motor vehicles to $2,725, or $2,725 in auto insurance for loss or damages (husband and wife may not double)
Jewelry, heirlooms & art to $7,175 total (husband and wife may not double)Health aids
None (use federal non-bankruptcy wage exemption)
^top
Federal bankruptcy exemptions not available in Colorado.
Colorado Homestead Exemption
Real property, mobile home, manufactured home, or house trailer you occupy to $60,000; $90,000 if owner, spouse, or dependent is disabled or age 60 or older; sale proceeds exempt 2 years after received (husband & wife may double)
Minimum 75% of weekly net earnings or 30 times the federal or state minimum wage, whichever is greater, including pension and insurance payments
Motor vehicles or bicycles used for work to $5,000; to $10,000 if used by a debtor or by a dependent who is disabled or age 60 or older
Clothing to $1,500
None
^top
In Connecticut, a debtor may choose State or Federal bankruptcy exemptions.
Connecticut Homestead Exemption
Real property, including mobile or manufactured home, to $75,000 (husband & wife may double); applies only to claims arising after 1993, but to $125,000 in the case of a money judgment arising out of services provided at a hospital.
Minimum 75% of earned but unpaid weekly disposable earnings, or 40 times the state or federal hourly minimum wage, whichever is greater
$3,500
Wedding & engagement rings
$1,000 of any property
^top
Federal bankruptcy exemptions not available in Delaware.
Delaware Homestead Exemption
$50,000 in equity in real estate or manufactured home that is debtor's principal residence (joint filers may not double)
85% of earned but unpaid wages
Vehicle necessary for purposes of employment to $15,000 each
$25,000 (maximum) for any personal property and/or equity in real property, other than the debtor's principal residence
$500 of any personal property, except tools of trade, if head of family
^top
In District of Columbia, a debtor may choose State or Federal bankruptcy exemptions.
District of Columbia Homestead Exemption
Any property used as a residence or co-op that debtor or debtor's dependent uses as a residence
Minimum 75% of earned but unpaid wages, pension payments; bankruptcy judge may authorize more for low-income debtors
$2,575
Appliances, books, clothing, household furnishings, and goods, musical instruments, pets to $425 per item or $8,625 total
Up to $850 in any property, plus up to $8,075 of unused homestead exemption
^top
Federal bankruptcy exemptions not available in Florida.
Florida Homestead Exemption
Real or personal property including mobile or modular home to unlimited value; cannot exceed half acre in municipality or 160 acres elsewhere; spouse or child of deceased owner may claim homestead exemption (husband & wife may double)
100% of wages for heads of family up to $500 per week either unpaid or paid and deposited into bank account for up to 6 months
Motor vehicle to $1,000
Any personal property to $1,000 (husband & wife may double)
See personal property
^top
Federal bankruptcy exemptions not available in Georgia.
Georgia Homestead Exemption
Real or personal property, including co-op, used as residence to $10,000 ($20,000 if married, and the property is solely owned by one spouse); up to $5,000 of unused portion of homestead may be applied to any property
Minimum 75% of earned but unpaid weekly disposable earnings, or 40 times the state or federal hourly minimum wage, whichever is greater, for private & federal workers; bankruptcy judge may authorize more for low-income debtors
Motor vehicles to $3,500
Animals, crops, clothing, appliances, books, furnishings, household goods, musical instruments to $300 per item, $5,000 total
Unused portion of homestead exemption to $5,000
^top
In Hawaii, a debtor may choose State or Federal bankruptcy exemptions.
Hawaii Homestead Exemption
Head of family or over 65 to $30,000; all others to $20,000; property cannot exceed 1 acre; sale proceeds exempt for 6 months after sale (husband & wife may not double)
Unpaid wages due for services of past 31 days
Motor vehicle to wholesale value of $2,575
Jewelry, watches, & articles of adornment to $1,000
None
^top
Federal bankruptcy exemptions not available in Idaho.
Idaho Homestead Exemption
Real property or mobile home to $100,000; sale proceeds exempt for 6 months (husband and wife may not double)
Minimum 75% of earned but unpaid weekly disposable earnings, or 30 times the federal hourly minimum wage, whichever is greater; pension payments; bankruptcy judge may authorize more for low-income debtors
$7,000
Appliances, furnishings, books, clothing, pets, musical instruments, 1 firearm, family portraits, & sentimental heirlooms to $750 per item, $7,500 total
$800 in any tangible personal property
^top
Federal bankruptcy exemptions not available in Illinois.
Illinois Homestead Exemption
Real or personal property including a farm, lot, & buildings, condo, co-op, or mobile home to $15,000 (husband and wife may double); sale proceeds exempt for 1 year
Minimum 85% of earned but unpaid weekly wages or 45 times the federal minimum hourly wage; bankruptcy judge may authorize more for low-income debtors
$2,400
See Wild Card
$4,000 of any personal property (does not include wages)
^top
Federal bankruptcy exemptions not available in Indiana.
Indiana Homestead Exemption
Real or personal property used as residence to $15,000 (husband and wife may double);
Minimum 75% of earned but unpaid weekly disposable earnings, or 30 times the federal hourly minimum wage; bankruptcy judge may authorize more for low-income debtors
No specific exemption
Health aids
$8,000 of any real estate or tangible personal property
^top
Federal bankruptcy exemptions not available in Iowa.
Iowa Homestead Exemption
Real property or an apartment to an unlimited value; property cannot exceed 1/2 acre in town or city, 40 acres elsewhere (husband & wife may not double)
Expected annual earnings Amount NOT exempt per year
$7,000
Clothing & its storage containers, household furnishings, appliances, musical instruments, and other personal property to $7,000
$1,000 of any personal property, including cash
^top
Federal bankruptcy exemptions not available in Kansas.
Kansas Homestead Exemption
Real property or mobile home you occupy or intend to occupy to unlimited value; property cannot exceed 1 acre in town or city, 160 acres on farm
Minimum 75% of disposable weekly wages or 30 times the federal minimum hourly wage per week, whichever is greater; bankruptcy judge may authorize more for low-income debtors
$20,000; if designed or equipped for disabled person, no limit
Furnishings & household equipment
None
^top
In Kentucky, a debtor may choose State or Federal bankruptcy exemptions.
Kentucky Homestead Exemption
Real or personal property used as residence to $5,000; sale proceeds exempt
Minimum 75% of disposable weekly earnings or 30 times the federal minimum hourly wage per week, whichever is greater; bankruptcy judge may authorize more for low-income debtors
$2,500
Burial plot to $5,000, in lieu of homestead
$1,000 of any property
^top
Federal bankruptcy exemptions not available in Louisiana.
Louisiana Homestead Exemption
Property you occupy to $25,000 (if debt is result of catastrophic or terminal illness or injury, limit is full value of property as of 1 year before filing); cannot exceed 5 acres in city or town, 200 acres elsewhere (husband & wife may not double)
Minimum 75% of disposable weekly earnings or 30 times the federal minimum hourly wage per week, whichever is greater; bankruptcy judge may authorize more for low-income debtors
$7,500
Arms, military accoutrements; bedding; dishes, glassware, utensils, silverware (nonsterling); clothing, family portraits, musical instruments; bedroom, living room, & dining room furniture; poultry, 1 cow, household pets; heating & cooling equipment, refrigerator, freezer, stove, washer & dryer, iron, sewing machine
None
^top
Federal bankruptcy exemptions not available in Maine.
Maine Homestead Exemption
Real or personal property (including cooperative) used as residence to $47,500; if debtor has minor dependents in residence, to $95,000; if debtor over age 60 or physically or mentally disabled, $95,000 (joint debtors in this category may double); proceeds of sale exempt for six months
None (use federal nonbankruptcy wage exemption)
$5,000
Animals, crops, musical instruments, books, clothing, furnishings, household goods, appliances to $200 per item
$400, in any property
^top
Federal bankruptcy exemptions not available in Maryland.
Maryland Homestead Exemption
None; however, property held as tenancy by the entirety is exempt against debts owed by only one spouse
Earned but unpaid wages, the greater of 75% or $145 per week; in Kent, Caroline, & Queen Anne's of Worcester Counties, the greater of 75% or 30 times federal minimum hourly wage
none
Appliances, furnishings, household goods, books, pets, & clothing to $1000 total Clothing, books, tools, instruments, & appliances needed for trade or profession to $5,000
$6,000 of cash or any property; must claim exemption within 30 days of levy or attachment
^top
In Massachusetts, a debtor may choose State or Federal bankruptcy exemptions.
Massachusetts Homestead Exemption
Property you occupy or intend to occupy (including mobile home) to $500,000; (special rules if over 65 or disabled).
Earned but unpaid wages to $125 per week
$700
Beds & bedding; heating unit; clothing
None
^top
In Michigan, a debtor may choose State or Federal bankruptcy exemptions.
Michigan Homestead Exemption
Real property including condo to $34,450, 51,650 if elderly or disabled; property cannot exceed 1 lot in town, village, city, or 40 acres elsewhere; spouse or children of deceased owner may claim homestead exemption. Spouses or unmarried co-owners may not double.
Head of household may keep 60% of earned but unpaid wages (no less than $15/week), plus $2/week per nonspouse dependent; if not head of household may keep 40% (no less than $10/week)
$3,175
Appliances, utensils, books, furniture, & household goods, to $525 each, to $3,450 total
None
^top
In Minnesota, a debtor may choose State or Federal bankruptcy exemptions.
Minnesota Homestead Exemption
Home and land on which it is situated to $360,000; if homestead is used for agricultural purposes, $900,000; cannot exceed 1/2 acre in city, 160 acres elsewhere (husband & wife may not double)
Wages, paid within 6 mos. of returning to work, after receiving welfare or after incarceration; includes earnings deposited in a financial institution in the last 60 days
$4,400 (up to $44,000 if vehicle has been modified for disability)
Appliances, furniture, jewelry, radio, phonographs, & TV to $9,900 total
None
^top
Federal bankruptcy exemptions not available in Mississippi.
Mississippi Homestead Exemption
Property you own & occupy to $75,000; if over 60 and married or widowed may claim a former residence; property cannot exceed 160 acres; sale proceeds exempt
Earned but unpaid wages owed for 30 days; after 30 days, minimum 75% of earned but unpaid weekly disposable earnings, or 30 times the federal hourly minimum wage, whichever is greater (bankruptcy judge may authorize more for low-income debtors)
No specific exemption
Tangible personal property to $10,000: any items worth less than $200 each; furniture, dishes, kitchenware, household goods, appliances, 1 radio & 1 TV, 1 firearm, 1 lawnmower, clothing, wedding rings, motor vehicles, tools of the trade, books, crops, health aids, domestic animals (does not include works of art, antiques, jewelry, or electronic entertainment equipment)
$50,000 of any property, whether real, personal or mixed, tangible or intangible, including deposits of money, available to any Mississippi resident who is 70 years of age or older.
^top
Federal bankruptcy exemptions not available in Missouri.
Missouri Homestead Exemption
Real property to $15,000 or mobile home to $5,000 (joint owners may not double)
Minimum 75% of weekly earnings (90% of weekly earnings for head of family), or 30 times the federal minimum hourly wage, whichever is more; bankruptcy judge may authorize more for low-income debtors
Motor vehicle to $3,000
Appliances, household goods, furnishings, clothing, books, crops, animals, & musical instruments to $3,000 total
$1,250 of any property if head of family, else $600; head of family may claim additional $350 per child.
^top
Federal bankruptcy exemptions not available in Montana.
Montana Homestead Exemption
Real property or mobile home you occupy to $250,000; sale, condemnation, or insurance proceeds exempt for 18 months
Minimum 75% of earned but unpaid weekly disposable earnings, or 30 times the federal hourly minimum wage, whichever is greater; bankruptcy judge may authorize more for low-income debtors
$2,500
Appliances, household furnishings, goods, animals with feed, crops, musical instruments, books, firearms, sporting goods, clothing, & jewelry to $600 per item, $4,500 total
None
^top
Federal bankruptcy exemptions not available in Nebraska.
Nebraska Homestead Exemption
$60,000 for married debtor or head of household; cannot exceed 2 lots in city or village, 160 acres elsewhere; sale proceeds exempt 6 months after sale (husband & wife may not double)
Minimum 85% of earned but unpaid weekly disposable earnings or pension payments for head of family; minimum 75% of earned but unpaid weekly disposable earnings, or 30 times the federal hourly minimum wage, whichever is greater, for all others; bankruptcy judge may authorize more for low-income debtors
Motor vehicle if used to commute to work (as part of $2,400 tools of trade exemption)
Furniture, household goods & appliances, household electronics, personal computers, books, & musical instruments to $1,500
$2,500 of any personal property, except wages, in lieu of homestead
^top
Federal bankruptcy exemptions not available in Nevada.
Nevada Homestead Exemption
Real property or mobile home to $550,000 (husband & wife may not double)
Minimum 75% of disposable weekly earnings or 50 times the federal minimum hourly wage per week, whichever is more; bankruptcy judge may authorize more for low-income debtors
Motor vehicle to $15,000; no limit on vehicle equipped for disabled person
One gun
$1,000
^top
In New Hampshire, a debtor may choose State or Federal bankruptcy exemptions.
New Hampshire Homestead Exemption
Real property or manufactured housing (and the land it's on if you own it) to $100,000
50 times the federal minimum hourly wage per week
Motor vehicle to $4,000
Beds, bedding, & cooking utensils
$1,000 of any property
^top
In New Jersey, a debtor may choose State or Federal bankruptcy exemptions.
New Jersey Homestead Exemption
None, but survivorship interest of a spouse in property held as tenancy by the entirety is exempt from creditors of a single spouse
90% of earned but unpaid wages if annual income under 250% of the poverty level for family size; 75% if annual income is more than that amount
no specific exemption
Personal property & possessions of any kind, stock or interest in corporations to $1,000 total
None (see personal property)
^top
In New Mexico, a debtor may choose State or Federal bankruptcy exemptions.
New Mexico Homestead Exemption
$60,000 (joint owners may double)
Minimum 75% of disposable earnings or 40 times the federal hourly minimum wage, whichever is more; bankruptcy judge may authorize more for low-income debtors
Motor vehicle to $4,000
Books & furniture
$500 of any personal property
^top
Federal bankruptcy exemptions not available in New York.
New York Homestead Exemption
Real property including co-op, condo, or mobile home, to $50,000 (husband & wife may double)
90% of earned but unpaid wages received within 60 days before & anytime after filing
Motor vehicle to $2,400 (husband & wife may double)
Bible, schoolbooks, other books to $50; pictures; clothing; church pew or seat; sewing machine, refrigerator, TV, radio; furniture, cooking utensils & tableware, dishes; food to last 60 days; stoves with fuel to last 60 days; domestic animal with food to last 60 days, to $450; wedding ring; watch to $35; exemptions may not exceed $5,000 total (including tools of trade & limited annuity)
None
^top
Federal bankruptcy exemptions not available in North Carolina.
North Carolina Homestead Exemption
Real or personal property, including co-op, used as residence to $35,000 (husband and wife may double) ($60,000 if 65 or older and spouse is deceased); up to $5,000 of unused portion of homestead may be applied to any property
Earned but unpaid wages received 60 days before filing for bankruptcy, needed for support
Motor vehicle to $3,500
Animals, crops, musical instruments, books, clothing, appliances, household goods & furnishings to $5,500 total; may add $1,000 per dependent, up to $4,000 total additional (all property must have been purchased at least 90 days before filing)
$5,000 less any amount claimed for homestead or burial exemption, of any property
^top
Federal bankruptcy exemptions not available in North Dakota.
North Dakota Homestead Exemption
Real property, house trailer, or mobile home to $100,000 (husband & wife may not double)
Minimum 75% of disposable weekly earnings or 40 times the federal minimum wage, whichever is more; bankruptcy judge may authorize more for low-income debtors
Motor vehicle to $2,950 or $32,000 for vehicle that has been modified to accommodate owner's disability
1. All debtors may exempt: Bible, schoolbooks; other books
$7,500 of any property in lieu of homestead
^top
Federal bankruptcy exemptions not available in Ohio.
Ohio Homestead Exemption
Real or personal property used as residence to $21,625
Minimum 75% of disposable weekly earnings or 40 times the federal hourly minimum wage, whichever is higher; bankruptcy judge may authorize more for low-income debtors
Motor vehicle to $3,450
Animals, crops, books, musical instruments, appliances, household goods, furnishings, firearms, hunting & fishing equipment to $525 per item; jewelry to $1,450 for 1 or more items; $11,525 total.
$1,175 of any property
^top
Federal bankruptcy exemptions not available in Oklahoma.
Oklahoma Homestead Exemption
Real property or manufactured home to unlimited value; property cannot exceed 1 acre in city, town, or village, or 160 acres elsewhere; $5,000 limit if more than 25% of total sq. ft. area used for business purposes; okay to rent homestead as long as no other residence is acquired
75% of wages earned in 90 days before filing bankruptcy; bankruptcy judge may allow more if you show hardship
Motor vehicle to $7,500
None
^top
Federal bankruptcy exemptions not available in Oregon.
Oregon Homestead Exemption
Real property, mobile home or houseboat you occupy or intend to occupy to $40,000 ($50,000 for joint owners); property cannot exceed 1 block in town or city or 160 acres elsewhere; sale proceeds exempt 1 year from sale, if you intend to purchase another home
75% of disposable wages or $170 per week, whichever is greater; bankruptcy judge may authorize more for low-income debtors
Motor vehicle to $3,000 (husband & wife may double)
Clothing, jewelry, & other personal items to $1,800 total (husband & wife may double)
$400 of any personal property not already covered by existing exemption (husband & wife may double)
^top
In Pennsylvania, a debtor may choose State or Federal bankruptcy exemptions.
Pennsylvania Homestead Exemption
None; however, property held as tenancy by the entirety may be exempt against debts owed by only one spouse
Earned but unpaid wages
none
Bibles & schoolbooks
$300 of any property, including cash, real property, securities, or proceeds from sale of exempt property
^top
In Rhode Island, a debtor may choose State or Federal bankruptcy exemptions.
Rhode Island Homestead Exemption
$300,000 in land & buildings you occupy or intend to occupy as a principal residence (husband & wife may not double)
Earned but unpaid wages to $50
Motor vehicles to $12,000
Clothing
$5,000
^top
In South Carolina, a debtor may choose State or Federal bankruptcy exemptions.
South Carolina Homestead Exemption
Real property, including co-op, to $53,375 (joint owners may double)
None (use federal nonbankruptcy wage exemption)
Motor vehicle to $5,350
Jewelry to $1,075
Up to $5,350 for any property, from unused exemptions amounts for homestead, burial, motor vehicle, personal property, jewelry or tool of trade exemptions.
^top
Federal bankruptcy exemptions not available in South Dakota.
South Dakota Homestead Exemption
Real property to unlimited value or mobile home (larger than 240 sq. ft. at its base and registered in state at least 6 months before filing) to unlimited value; property cannot exceed 1 acre in town or 160 acres elsewhere; sale proceeds to $30,000 ($170,000 if over age 70 or widow or widower who hasn't remarried) exempt for 1 year after sale (husband & wife may not double)
Earned wages owed 60 days before filing bankruptcy, needed for support of family
no specific exemption
Bible, schoolbooks; other books to $200
Head of family may claim $6,000, or nonhead of family may claim $4,000 of any personal property
^top
Federal bankruptcy exemptions not available in Tennessee.
Tennessee Homestead Exemption
$5,000; $7,500 for joint owners; $25,000 if at least one dependent is a minor child. (if 62 or older, 12,500 if single; $20,000 if married; $25,000 if spouse is also 62 or older)
Minimum 75% of disposable weekly earnings or 30 times the federal minimum hourly wage, whichever is more, plus $2.50 per week per child; bankruptcy judge may authorize more for low-income debtors
no specific exemption
$10,000 of any personal property including deposits on account with any bank or financial institution
See personal property
^top
In Texas, a debtor may choose State or Federal bankruptcy exemptions.
Texas Homestead Exemption
Unlimited; property cannot exceed 10 acres in town, village, city or 100 acres (200 for families) elsewhere; sale proceeds exempt for 6 months after sale (renting okay if another home not acquired, Prop. 41.003)
Unpaid commissions not to exceed 25% of total personal property exemptions
1 two-, three- or four-wheeled motor vehicle per family member or per single adult who holds a driver's license; or, if not licensed, who relies on someone else to operate vehicle
Clothing & food
None
^top
Federal bankruptcy exemptions not available in Utah.
Utah Homestead Exemption
Real property, mobile home, or water rights to $20,000 if primary residence; $5,000 if not primary residence (joint owners may double)
Minimum 75% of disposable weekly earnings or 30 times the federal hourly minimum wage, whichever is more; bankruptcy judge may authorize more for low-income debtors
Motor vehicle to $2,500
Animals, books, & musical instruments to $500
None
^top
In Vermont, a debtor may choose State or Federal bankruptcy exemptions.
Vermont Homestead Exemption
Real property or mobile home to $75,000; may also claim rents, issues, profits, & out-buildings (husband and wife may double)
Minimum 75% of weekly disposable earnings or 30 times the federal minimum hourly wage, whichever is greater; bankruptcy judge may authorize more for low-income debtors
Motor vehicles to $2,500
Appliances, furnishings, goods, clothing, books, crops, animals, musical instruments to $2,500 total
Unused exemptions for motor vehicle, tools of trade, jewelry, household furniture, appliances, clothing, & crops to $7,000
^top
Federal bankruptcy exemptions not available in Virginia.
Virginia Homestead Exemption
Must file homestead declaration before filing for bankruptcy
Minimum 75% of weekly disposable earnings or 40 times the federal minimum hourly wage, whichever is greater; bankruptcy judge may authorize more for low-income debtors
Motor vehicle to $2,000 ($10,000 if needed for occupation or education)
Clothing to $1,000
Unused portion of homestead or personal property exemption
^top
In Washington, a debtor may choose State or Federal bankruptcy exemptions.
Washington Homestead Exemption
Real property, manufactured home, or mobile home to $125,000; unimproved property intended for residence to $15,000 (husband and wife may not double)
Minimum 75% of weekly disposable earnings or 30 times the federal minimum hourly wage, whichever is greater; bankruptcy judge may authorize more for low-income debtors
Motor vehicle to $2,500 total for individual (two vehicles to $5,000 for community)
Appliances, furniture, household goods, home & yard equipment to $2,700 total for individual ($5,400 for community)
$2,000 of any personal property (no more than $200 in cash, bank deposits, bonds, stocks, & securities)
^top
Federal bankruptcy exemptions not available in West Virginia.
West Virginia Homestead Exemption
Real or personal property used as residence to $25,000; unused portion of homestead may be applied to any property (husband & wife may double)
Minimum 30 times the federal minimum hourly wage per week; bankruptcy judge may authorize more for low-income debtors
Motor vehicle to $2,400
Animals, crops, clothing, appliances, books, household goods, furnishings, musical instruments to $400 per item, $8,000 total
$800 plus unused portion of homestead or burial exemption, of any property)
^top
In Wisconsin, a debtor may choose State or Federal bankruptcy exemptions.
Wisconsin Homestead Exemption
Property you occupy or intend to occupy to $75,000; sale proceeds exempt for 2 years if you intend to purchase another home (husband & wife's exemption may double)
75% of weekly net income or 30 times the greater of the federal or state minimum hourly wage; bankruptcy judge may authorize more for lowincome debtors
Motor vehicles to $5,000 (husband & wife may double; unused portion of $12,000 personal property exemption may be added)
Household goods and furnishings, clothing, keepsakes, jewelry, appliances, books, musical instruments, firearms, sporting goods, animals, and other tangible personal property to $12,000 total (husband & wife may double)
None
^top
Federal bankruptcy exemptions not available in Wyoming.
Wyoming Homestead Exemption
Real property you occupy to $10,000 or house trailer you occupy to $6,000 (joint owners may double)
Minimum 75% of disposable weekly earnings or 30 times the federal hourly minimum wage, whichever is more
Motor vehicle to $2,400
Bedding, furniture, household articles, & food to $2,000 per person in the home
None
Every state has laws that designate certain types of property (your
home, some personal possessions, tools of your trade) that are off-limits
to "unsecured" creditors -- that is, creditors who do not
have a lien on your property. Credit card debt and medical bills are
the two the most common types of unsecured debt (unless you have a
special 'secured' credit card).
Unsecured creditors cannot force you to sell your exempt property
to pay off the debt. Even if the creditor goes to court wins a court
judgment against you, and takes steps to attach a 'judgment lien' to
your property, you are still entitled to your exemption amount before
any sale proceeds are distributed to the unsecured creditor. (However,
some debts, like child support, may be an exception.)
If you eventually do sell your property voluntarily, the creditor
has a right to have its lien paid from the sale proceeds before you
receive anything. As a practical matter, most people facing bankruptcy
only own property that is exempt, and have no interest in selling what
they have. If all of your property is protected by exemption laws,
you are said to be "judgment proof" -- whether or not you
file for bankruptcy.
If you do file for bankruptcy and all your property is exempt, your
case is known as a "no asset" bankruptcy--which really means
you have no non-exempt assets.
In bankruptcy, a court official called the "bankruptcy trustee" represents
the rights of all unsecured creditors. The trustee can assert whatever
rights the creditors would have if they had a court judgment against
you.
Another important thing to remember about exemptions is that it only
protects the "equity" in your property. That is the difference
between the value of the property, and what you owe to secured creditors.
If you contractually agreed to pledge your property as collateral
for a debt, this property is known as "secured property,"
and the debt is called a "secured" debt, and the person you
owe is a "secured creditor" and they have a "security
interest" in the property. If the debt was incurred to purchase
the property itself (e.g. a car loan or first mortgage), the creditor
is said to have a "purchase money security interest"
(PMSI). Exemption laws offer no protection against such contractual
agreements that give the creditor a PMSI.
EXAMPLE:
If you owe $10,000 on a $12,000 car, you
have only $2,000 in equity. If your state has at least a $2,000 exemption
for motor vehicles, that will be enough to protect the car in bankruptcy
--(but you'll still need to make the car payments to the secured
creditor.
FOR MORE INFORMATION:
How
to File for Chapter 7 Bankruptcy
Buy now: Nolo
(publisher)
Legal test under the new bankruptcy law:
IF you have not lived in Alabama for
at least two years...
Then, which state did you consider to be your domicile two years
ago?
(If more than one state, choose the state in which you lived most
for the six months ending two years ago from this date.)
15th Edition, (Nolo 2008)
New Residency Requirements for Using State Exemptions
Prior to the new bankruptcy law, filers used the exemptions of the
state where they lived when they filed for bankruptcy. Under the
new rules, however, some filers will have to use the exemptions of
the state where they used to live. Congress was concerned
about people gaming the system by moving to states with liberal exemptions
just to file for bankruptcy. As a result, it passed residency requirements
filers have to meet before they can use a state’s exemption
system.
If you have lived or made your residence in your current
state for at least two years , you can use that state’s
exemptions.
If you have lived or made your residence in your current state
for more than 91 days but less than two years ,
you must use the exemptions of the state where you lived for the
better part of the 180-day period immediately prior to the two-year
period preceding your filing.
If you have lived or made your residence in your current state
for fewer than 91 days , you’ll need to wait
until you have lived there for at least 91 days before you can
file (and then use whatever exemptions are available to you according
to the rules set out above).
If the state you are filing in offers a choice between
the state and federal bankruptcy exemptions , you can
use the federal exemption list regardless of how long you’ve
been living in the state.If these rules deprive you of the right to use any state’s
exemptions, you can use the federal exemption list .
For example, some states allow their exemptions to be used only
by current state residents, which might leave former residents
who haven’t lived in their new home state for at least
two years without any available state exemptions.
A longer residency requirement applies to homestead exemptions :
If you acquired a home in your current state within the 40 months
before you file for bankruptcy (and you didn’t purchase it
with the proceeds from selling another home in that state), your
homestead exemption will be subject to a cap of $125,000, even if
the state homestead exemption available to you is larger. For detailed
information on homestead exemptions, see Ch. 4.
NOTE - a potential 'Catch 22': In some states, exemption rules can only be used by a resident, or if you have your "domicile" there . But the federal rule says you must use the state you moved away from. So.... if your former state has exemption laws that do not apply to non-residents -- then your your answer gets more complicated.exemptionsexpress.com/How.htm for a more detailed explanation of this issue.
Child support
Taxes
Secured claim holders
Under a new provision of the bankruptcy law, enacted in October 2005,
virtually all types of pension and retirement accounts recognized by
the IRS are completely exempt regardless of what state you live in.
This provision exempts "retirement funds to the
extent that those funds are in a fund or account that is exempt from
taxation under Sections 401, 403, 408, 408A, 414, 457, or 501(a) of
the Internal Revenue Code."
This list covers 401(k)s, 403(b)s, profit-sharing and money purchase
plans, IRAs (including SEP and SIMPLE plans), as well as defined-benefit
plans.
The exemption applies whether you rely on the list of federal bankruptcy
exemptions (11 U.S.C. 522(d)(12)) or the exemption laws of your own
state (See 11 U.S.C. 522(b)(3)(C)). Section 522(b)(4) spells out the
specific requirements for qualifying under these provisions.
These exemptions are unlimited, except for Roth and traditional IRAs,
which are capped at an aggregate IRA account value of $1 million
per individual (adjusted every three years for inflation). (See 11
U.S.C. 522(n))
SEP and SIMPLE IRAs, along with all other types of non-IRA retirement
accounts such as 401(k)s and 403(b)s, are completely exempt.
More Info
For more details, see an
excellent summary of how retirement accounts are treated under
the new bankruptcy law from the August 2005 issue of the Journal
of Financial Planning .
References to the Internal Revenue Code
The new bankruptcy law exemption for retirement accounts includes
all funds "exempt from taxation under section 401 , 403 , 408 , 408A , 414 , 457 ,
or 501(a)
401 (a
qualified pension, profit-sharing and stock bonus plan created
under a trust established by an employer for the exclusive benefit
of employees or beneficiaries) 403 (qualified
annuity plans that are established by an employer for an employee
under IRC 404(a)(2) or 501(c)(3) )
408 (IRAs)
408A (Roth
IRAs) 414 (other
retirement plan for controlled groups of employees such as churches,
partnerships, proprietorships, and governments) 457 (eligible
deferred compensation plans) or 501(a) (retirement
plans established and maintained by tax-exempt organizations, e.g.
churches, nonprofit organizations)
Special 'exclusion' of education accounts
Under the new bankruptcy law, education savings accounts or education
IRAs created under sections 529 or 530 of the Internal Revenue Code
are 'excluded' from the bankruptcy estate (not quite the same as 'exempt'
but with the same result).
See, 11 U.S.C. 541(b)(6), (529 Education Tuition Plans) and 11 U.S.C.
541(b)(5) (530 Coverdell IRAS)
NOTE: Even though these education accounts are excluded from the bankruptcy
estate, you still must list them on your forms (See section (11 U.S.C.
521(c).)
Also excluded are:
benefits governed by ERISA (Click here for government info
on ERISA and pensions .)
414(d)(governmental retirement plans),
IRC 457 (deferred compensation)
403(b)( tax deferred annuity plan including church plans, etc)
See 11 U.S.C. 541(b)(7)
Insurance exemptions use a lingo all their own and some familiarity
with the jargon is essential to understanding what is exempt.
Three kinds of insurance assets
You may own a property interest in life insurance in three different
ways: you may own an unmatured life insurance contract (with no cash
value - e.g. a term life insurance policy), you may own cash value
in an unmatured life insurance policy (e.g. a whole life policy), and
you may, as a beneficiary, be entitled to proceeds from a matured
life insurance policy.
"Matured " simply means that the conditions of the policy
have have been met. A matured policy is paying proceeds to the beneficiary
of the insured.
An unmatured policy is not paying proceeds, but, can still have a
current value in two ways:
1. In the case of a "term life" policy, the continued existence
of the contract itself can be said to have value, even if it cannot
be converted to cash.
2. Other kinds of of policies can have accumulate value over time,
and that value that can be borrowed against, or turned into cash if
the policy is 'surrendered' (see "avails" below).
Reading insurance exemptions
Many states have unlimited exemptions for insurance proceeds .
However, most states offer only limited exemptions for the cash or
loan value of an unmatured policy.
A few states, however, offer unlimited exemptions for the cash value
of such policies, or policies offered by 'fraternal benefit societies.'
In such states, life insurance is often an important component of an
overall asset protection strategy.
Other terms
Avails: Any amount available to the owner of an insurance policy other than the actual proceeds of the policy. Avails include dividend payments, interest, cash or surrender value (the money you'd get if you sold your policy back to the insurance company) and loan value (the amount of cash you can borrow against the policy).
The following websites offer information on exemptions,
but be careful to check whether the information is up to date. Here
are a few generally reliable, resources, which may or may not be up
to date.
AssetProtectionBook.com A
site geared toward the very rich with millions n assets, looking for
ways to shield them. Good discussion of using insurance as an exemption.
Extensive state by state review of exemptions. Site is updated "when
they get around to it" -- no guarantees of currency.
CCH
Business Owner's Toolkit Generally, a good reference site for
lawyers and small business owners. Exemption summaries do not have
citations, nor can you tell when the information was last updated.
Exemptions are not up-to-date for several states.
If you have recently moved
ExemptionsExpress offers a handy 50 state table and analysis to deal with the problem of how to comply with potentially conflicting state and federal banrkruptcy exemption laws if you have recently moved from one state to another .
Other Places to research Law
The Library
of Congress offers a directory of state resources for each state
If there is a lien on your property as a result of a court judgment
against you, you may have the right to remove it if it "impairs"
an exemption on the property. That is, if the equity in your property
is protected by an exemption, you can get the judicial lien on it removed
by the bankruptcy court as another element of the "fresh start" that
bankruptcy is designed to provide.
If there are judicial liens on your property, be sure to determine
which ones can be eliminated through the "lien avoidance" procedure.
Some liens cannot be removed however, including a judicial lien that
secures a domestic support obligation. 11
U.S.C.A. § 522(f)(1)(A) .
How to File for Chapter
7 Bankruptcy , 14th Edition, by Elias, Renauer & Leonard. Buy
now: Nolo :: Powell's :: Amazon
Note that some judicial district web sites have links for those who
provide free legal assistance to debtors who need representation in
a lien avoidance proceeding.
Bankruptcy offers the option of keeping your secured property by immediately
paying it's current replacement value of the object rather than the
loan amount. This can be an attractive option for those with auto loans
where the value of the car has most likely depreciated faster than
the loan balance. However, coming up with the full amount in cash can
be difficult if not impossible. In the past few years, a few alternatives
have arisen.
Vendors of "Redemption Financing"
The companies listed below specializes in making auto loans to bankrupt
debtors seeking the bankruptcy option of "redemption" of
their vehicle, whereby the debtor keeps the car by immediately paying
the vehicle's current market value (replacement value) rather than
the full loan amount over time. These companies will finance a new auto
loan (generally through a bank) to produce the cash to pay the redemption amount to your
original creditor, and then you pay the redemption amount to the new
lender over time. Of course, if you miss payments under the new loan,
you'll still lose the vehicle, but at least your monthly payments should
be smaller. The new lender takes ownership of the lien on your car.
Debtors must have an otherwise good credit history to qualify, and
the car must be in good enough condition (i.e. worth enough) to protect
the bank's loan.
This company specializes in making auto loans (through US Bank) to
debtors seeking the option of "redemption" available to those
in bankruptcy whereby the debtor can keep a car by paying the current
market value (replacement value) of the automobile rather than the
loan amount. The company will finance redemption of your existing automobile,
or arrange financing for a replacement automobile. Debtors must have
an otherwise good credit history to qualify. See the site for more
information.
The site has special home pages for debtors, debtors attorneys, creditors,
creditors attorneys, bankruptcy trustees, auto dealers.
Of course, if you can't make the payments on this revised amount loan,
you'll still lose the car, just to a different lender. So this option
is only a solution if you can make the payments on the reduced amount.
Fresh Start Loan Corporation, a Delaware Corporation, dba Redemption
Financial Services™ is a duly licensed Consumer Loan Company
that began its operations in 1999. The company is now licensed in 12
states*, with licenses pending in 6 states** as of January, 2005.
Paul D. Kirschner, President, General Counsel, Fresh Start Loan Corporation
. All employees of Fresh Start
Loan Corporation, its loan officers, loan processors, customer service
and intake employees are located at our headquarters in Gig Harbor,
Washington.
* Licensed in Alaska, Alabama, Arizona,
Georgia, Florida, Hawaii, Indiana, Kentucky, Missouri, Oregon, Utah
and Washington
by
Attorney Stephen
Elias. This book discusses, in plain-English
the practical implications of the bankruptcy law changes that
took effect in October 2005. The book explains how the new law is
not as bad as you may have thought. Most people
in financial straits can still gain much from filing. But there is
more paperwork and more stringent rules than under the old law. 
