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ABOUT CHAPTER 7
HOW CHAPTER 7 WORKS
THE CHAPTER 7 DISCHARGE
ABOUT CHAPTER 13
HOW CHAPTER 13 WORKS
THE CHAPTER 13 DISCHARGE
STATE EXEMPTIONS
COURT GUIDE
ROLE OF THE TRUSTEE
BANKRUPTCY TERMS
BANKRUPTCY & TAX LIABILITY
FREQUENTLY ASKED QUESTIONS

 
Federal Bankruptcy Exemptions Federal Bankruptcy Exemptions

Federal law also provides for bankruptcy exemptions. Federal exemptions are only available in certain states as the remaining states have opted out.

Debtors in the following states may select State or Federal Bankruptcy Exemptions:

Arkansas
Connecticut
District of Columbia
Hawaii
Kentucky
Massachusetts
Michigan
Minnesota
New Hampshire
New Jersey
New Mexico
Pennsylvania
Rhode Island
Texas
Vermont
Washington
Wisconsin

If you live in a state that has not opted out of the federal bankruptcy exemptions, you have the right to use either the federal or state exemptions. You are not allowed to mix and match from both, so compare both sets and choose the exemption table that best helps your personal situation.

MARRIED COUPLES FILING JOINTLY MAY DOUBLE ALL EXEMPTIONS
All references are to 11 USC § 522.

ASSET

EXEMPTION

LAW PROVISION

HOMESTEAD

Real property, including co-op or mobile home, to $23,675; unused portion of homestead to $11,850 may be applied to any property

(d)(1)

INSURANCE

Disability, illness or unemployment benefits

Life insurance payments for persons who depend on debtor, needed for support

Life insurance policy with loan value, in accrued dividends or interest, to $12,625

Unmatured life insurance contract, except credit insurance policy

(d)(10)(C)


(d)11)(C)



(d)(8)



(d)(7)

MISC.

Alimony, child support needed for support

(d)(10(D)

PENSIONS

ERISA-qualified benefits needed for support

(d)(10)(E)

PERSONAL PROPERTY

Animals, crops, clothing, appliances, books, furnishings, household goods, musical instruments to $600 per item, $12,625 total

Health aids

Jewelry to $1,600

Lost earnings payments

Motor vehicle to $3,775

Personal injury recoveries to $22,975 (not to include pain and suffering or pecuniary loss)

Wrongful death recoveries for person debtor depended on

(d)(3)



(d)(9)


(d)(4)

(d)(11)(E)

(d)(2)

(d)(11)(D)



(d)(11)(B)

PUBLIC BENEFITS

Crime victims’ compensation

Public assistance

Social Security

Unemployment compensation

Veterans’ benefits

(d)(11)(A)

(d)(10)(A)

(d)(10)(A)

(d)(10)(A)

(d)(10)(A)

TOOLS OF TRADE

Implements, books & tools of trade to $2,375

(d)(6)

WAGES

NONE

 

WILD CARD

$1,250 of any property

Up to $11,850 of unused homestead exemption, for any property

(d)(5)

(d)(5)


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