Bankruptcy Exemptions by State: What You Keep Varies Where You Live
Bankruptcy exemptions — what property you're allowed to keep — differ significantly from state to state. Here's what typically varies and why it matters before you file.
Why exemptions matter so much
Exemptions determine what property you get to keep when you file — your home equity, your car, tools of your trade, retirement accounts, and more. Because bankruptcy exemptions are set at the state level (with a federal alternative some states also allow), the same filer can end up with very different protection depending on where they live.
What typically varies state to state
Homestead exemption
Some states protect an unlimited amount of home equity; others cap it at a modest dollar figure.
Motor vehicle exemption
The amount of vehicle equity you can protect ranges widely and sometimes depends on whether you use the car for work.
Wildcard exemption
Many states offer a flexible amount you can apply to any property — useful for protecting cash, jewelry, or anything not otherwise covered.
Federal vs. state exemptions
Some states require residents to use only their state's exemption list; others allow filers to choose between state exemptions and the federal bankruptcy exemption schedule, whichever protects more. Which option is available — and which is better for your situation — depends entirely on where you live and what you own.
Why this is worth checking before you file
Exemption planning can materially change what you keep. This is one of the clearest reasons a consultation with a licensed attorney in your state matters — exemption amounts and rules change over time and are easy to get wrong without local expertise.
Exemption planning resources
Independently useful references readers on this topic often pick up — as an Amazon Associate we may earn from qualifying purchases.