Bankruptcy Exemptions
Bankruptcy exemptions are the categories of property protected from liquidation in Chapter 7, or that factor into how much you must repay creditors in Chapter 13. What's exempt — and how much — varies significantly by state.
What Exemptions Are
Exemptions shield specific property from being sold to repay creditors in a bankruptcy case. Every state has its own exemption scheme, and filers may sometimes choose between state exemptions and a federal exemption scheme, depending on the state.
Common Exempt Categories
- Homestead exemption — protects some or all equity in your primary residence
- Vehicle exemption — protects some equity in one or more vehicles
- Retirement accounts — commonly protected, often broadly, under federal law
- Personal property — clothing, household goods, and other everyday items, up to certain limits
These categories are general and framing-only — specific dollar limits are not stated here because they vary by state and change over time.
State vs. Federal Exemption Systems
Some states require filers to use that state's own exemption list; others allow a choice between state exemptions and the federal bankruptcy exemption scheme. This choice can significantly affect what property you keep, and it varies by where you live and how long you've resided there.
Do Not Rely on This Page for Specific Dollar Figures
Exemption amounts vary significantly by state and change over time. This page intentionally avoids stating specific dollar figures because an outdated or wrong number could mislead you into a bad decision. Confirm current exemption amounts with a licensed bankruptcy attorney or your state's current statute before filing.
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This information is for general education only and is not legal advice. Bankruptcy law is complex and varies by jurisdiction and individual circumstances. Consult a licensed bankruptcy attorney before making any decisions about filing.