Bankruptcy Exemption
Calculator
Filing bankruptcy doesn't mean losing everything. Exemptions protect specific property from creditors — your home equity, vehicle, retirement accounts, and personal belongings can often be kept in full. But the rules vary dramatically by state: Texas offers unlimited homestead protection while some states cap it at a few thousand dollars. This free tool shows exactly what you can protect.
Important: This tool provides educational estimates only — not legal advice. Made For Law is not a law firm and is not affiliated with, endorsed by, or connected to any federal, state, county, or local government agency or court system. Calculator results are based on statutory formulas and publicly available fee schedules — not AI. Supporting content is AI-assisted and editorially reviewed. Results may not reflect recent legislative changes or your specific circumstances. Do not rely solely on these estimates — always verify with official sources and consult a licensed attorney before making legal or financial decisions. Full disclaimer
Look Up Your Bankruptcy Exemptions
Select your state to see a complete breakdown of exemption amounts for homestead, vehicle, personal property, and more.
What Are Bankruptcy Exemptions?
Bankruptcy exemptions are legal protections that let you keep certain property when you file for bankruptcy. They exist because the goal of bankruptcy is a fresh financial start — not destitution.
Chapter 7 (Liquidation)
In Chapter 7, exemptions determine which property is shielded from the bankruptcy trustee. Exempt property stays with you; non-exempt property can be sold to repay creditors. Most Chapter 7 cases are “no-asset” cases where everything is exempt.
Chapter 13 (Repayment Plan)
In Chapter 13, you keep all property but must pay unsecured creditors at least as much as they would receive in a Chapter 7 liquidation. Your non-exempt property value sets the floor for your repayment plan payments over 3 to 5 years.
Federal vs. State Exemption Systems
The U.S. has two parallel exemption systems. Approximately 35 states let you choose between federal and state exemptions; roughly 15 states require you to use their own state exemptions only (called “opt-out” states).
Federal Exemptions (11 USC §522(d))
- Homestead$27,900
- Motor vehicle$4,450
- Household goods$14,875
- Wildcard$1,475 + $13,950*
*Unused portion of homestead exemption can be applied to wildcard
State Exemptions
- Homestead: ranges from $0 (no exemption) to unlimited (TX, FL, KS, IA, OK, SD)
- Vehicle: ranges from $1,000 to $15,000+ depending on state
- Wildcard: not available in every state; amounts vary from $1,000 to $30,000+
- Benefit: may be significantly higher than federal for certain property types
State Exemption Comparison Table
Key bankruptcy exemptions for 10 major states. Amounts shown are per individual filer; married couples filing jointly may double these in many states.
| State | Homestead | Vehicle | Wildcard | Opt-Out? |
|---|---|---|---|---|
| California | $300,000–$600,000 | $7,500 | System 2: $33,650 | Choice |
| Texas | Unlimited (10 acres urban) | $Aggregate personal property | N/A | State only |
| Florida | Unlimited (1/2 acre urban) | $1,000 | N/A | State only |
| New York | $179,950–$399,975 | $4,825 | N/A | Choice |
| Ohio | $145,425 | $4,450 | $1,325 | Choice |
| Illinois | $15,000 | $2,400 | $4,000 | State only |
| Pennsylvania | None (use federal) | Use federal | Use federal | Choice |
| Georgia | $21,500 | $5,000 | $1,200 | State only |
| North Carolina | $35,000 | $3,500 | $5,000 | State only |
| Michigan | $40,475 | Use federal | Use federal | Choice |
Exemption amounts current as of March 2026 and are adjusted periodically for inflation. Verify with a local bankruptcy attorney.
What You Can Keep in Bankruptcy
Home Equity
Protected up to your state or federal homestead exemption limit. In Texas and Florida, there is no dollar cap on homestead protection.
Vehicle
One motor vehicle protected up to the exemption limit. If you owe more than the car is worth, equity is zero and the vehicle is fully protected.
Retirement Accounts
ERISA-qualified accounts (401(k), 403(b), pensions) are 100% exempt regardless of balance. IRAs protected up to $1,512,350.
Personal Property
Household goods, furniture, appliances, and clothing are typically exempt up to a per-item and aggregate limit. Federal limit is $14,875 total.
Tools of the Trade
Tools, equipment, and books used in your profession are protected. Federal limit is $2,800; many states offer higher limits.
Public Benefits
Social Security, unemployment, disability, veterans' benefits, and public assistance are fully exempt in all states. These cannot be taken by creditors.
What You Might Lose
Non-exempt assets are at risk in Chapter 7. In practice, most filers keep everything — but these categories are the most common targets:
Cash Above Exemption Limits
Bank account balances and cash on hand that exceed your state's cash exemption. Some states provide little or no cash protection.
Second Homes & Vacation Property
The homestead exemption only covers your primary residence. Vacation homes, cabins, and investment property have no homestead protection.
Investment Property
Rental properties, stocks, bonds, and non-retirement investment accounts are generally not protected by standard exemptions.
Luxury Items
Collections (art, wine, coins), expensive jewelry beyond the personal property exemption, recreational vehicles, and boats may be targeted.
Tax reimbursements
Pending or recent tax reimbursements are part of your bankruptcy estate. Some states exempt a portion, but many do not protect reimbursements at all.
Opt-Out States Explained
About 15 states have “opted out” of the federal bankruptcy exemption system, meaning filers in those states must use state exemptions only — they cannot choose the federal exemptions under 11 USC §522(d).
This isn't necessarily bad. Some opt-out states (like Texas and Florida) have far more generous exemptions than the federal system. Others (like Georgia and Indiana) may offer less protection in certain categories. Knowing whether your state is an opt-out state is the first step in bankruptcy planning.
Common Opt-Out States
Alabama, California (has its own two systems), Florida, Georgia, Idaho, Illinois, Indiana, Kansas, Louisiana, Mississippi, Nebraska, Nevada, North Carolina, Ohio, Oklahoma, Oregon, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, West Virginia, and Wyoming. Some states allow a modified choice. Always verify current law with a bankruptcy attorney.
Frequently Asked Questions
Edited and reviewed by our editorial team. Answers are general information — not legal advice.
What can I keep if I file bankruptcy?
What you keep depends on your state's exemption laws (or federal exemptions if your state allows you to choose). Most filers keep their home equity up to the exemption limit, a vehicle, retirement accounts, household goods, and personal property. The specific dollar amounts vary dramatically by state — Texas and Florida offer unlimited homestead exemptions, while other states cap protection at $5,000 or less.
What is the homestead exemption in bankruptcy?
The homestead exemption protects equity in your primary residence from creditors during bankruptcy. Under federal law, the exemption is $27,900 per filer ($55,800 for married couples filing jointly). State exemptions range from as low as $5,000 in some states to unlimited in Texas, Florida, Iowa, Kansas, Oklahoma, and South Dakota. You must have owned and lived in the home for at least 730 days before filing to use your state's full homestead exemption.
Are retirement accounts protected in bankruptcy?
Yes — ERISA-qualified retirement accounts (401(k), 403(b), pension plans, profit-sharing plans) are 100% exempt from bankruptcy under federal law, regardless of balance. Traditional and Roth IRAs are protected up to $1,512,350 (adjusted periodically for inflation). SEP-IRAs and SIMPLE IRAs have the same protection as ERISA plans. This protection applies in both Chapter 7 and Chapter 13 cases.
Can I keep my car in bankruptcy?
Usually yes, if your equity in the vehicle is within the exemption limit. The federal motor vehicle exemption is $4,450. State exemptions range from $1,000 to $15,000 or more. If your car is worth less than the exemption amount (or the loan balance exceeds the car's value), it's fully protected. If you have excess equity, you may be able to cover it using the wildcard exemption.
What is the wildcard exemption?
The wildcard exemption lets you protect any property of your choosing, regardless of category. Under federal law, the wildcard is $1,475 plus up to $13,950 of any unused portion of the homestead exemption. If you're a renter (not using the homestead exemption), you could have up to $15,425 in wildcard protection. Not every state offers a wildcard — check your state's exemption schedule.
Which states have the best bankruptcy exemptions?
Texas and Florida are widely considered the most debtor-friendly states due to their unlimited homestead exemptions. Kansas, Iowa, Oklahoma, and South Dakota also offer unlimited homestead protection. For overall exemption generosity (beyond homestead), states like Nevada, Minnesota, and Massachusetts provide strong vehicle and personal property exemptions. However, about 15 states require you to use state exemptions only — you cannot choose the federal exemptions.
What happens to non-exempt property?
In Chapter 7, the bankruptcy trustee can seize and sell non-exempt property to pay creditors. In practice, most Chapter 7 cases are 'no-asset' cases — the debtor's property is fully covered by exemptions. In Chapter 13, you don't lose non-exempt property, but you must pay creditors at least the value of your non-exempt assets through your repayment plan over 3 to 5 years.
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