Federal Bankruptcy Exemptions

The federal exemption scheme under 11 U.S.C. § 522(d) is available in 17 states. Here are the current amounts.

Federal exemption amounts (2024)

Federal exemption amounts are adjusted every 3 years for inflation. The amounts below reflect the most recent adjustment effective April 1, 2022. The next adjustment occurs April 1, 2025.

CategorySectionAmount
Homestead (real or personal property used as residence)§ 522(d)(1)$27,900
Motor vehicle§ 522(d)(2)$4,450
Household goods (per item)§ 522(d)(3)$700 per item, $14,875 total
Jewelry§ 522(d)(4)$1,875
Wildcard (any property)§ 522(d)(5)$1,475 + up to $13,950 of unused homestead
Tools of the trade§ 522(d)(6)$2,800
Life insurance (unmatured)§ 522(d)(7)Unlimited (no cash value limit separately)
Life insurance (cash value)§ 522(d)(8)$14,875
Health aids§ 522(d)(9)Unlimited
Social Security, disability, unemployment§ 522(d)(10)Unlimited
Alimony and child support§ 522(d)(10)(D)Reasonably necessary
Personal injury recovery§ 522(d)(11)(D)$27,900
Retirement accounts (ERISA)§ 522(b)(3)(C)Unlimited
IRA/Roth IRA§ 522(n)~$1,512,350

States where federal exemptions are available

The following 17 states (plus DC) allow debtors to choose between federal and state exemptions:

Connecticut, Delaware, District of Columbia, Hawaii, Kentucky, Massachusetts, Michigan, Minnesota, New Hampshire, New Jersey, New Mexico, New York, Oregon, Pennsylvania, Rhode Island, Texas, Vermont, Washington, Wisconsin.

In these states, you choose whichever set -- federal or state -- gives you better protection. You cannot mix and match between the two systems.

11 U.S.C. § 522(b)(1): A debtor may exempt property under either the federal exemptions in paragraph (2) or the state exemptions in paragraph (3), but not both. The choice must be consistent for all property claimed as exempt.

The wildcard exemption is powerful. If you do not own a home (or do not use the full homestead exemption), you can shift up to $13,950 of the unused homestead into the wildcard under § 522(d)(5). Combined with the base $1,475, that gives you $15,425 to protect any property -- cash, bank accounts, tax refunds, or anything else.

Related Topics

How to File Bankruptcy What Is Chapter 7? Chapter 13 Plans The Means Test

Related Resources

The Means Test -- Section 707(b) income test for Chapter 7 eligibility

Chapter 7 vs Chapter 13 -- Side-by-side comparison of liquidation vs repayment plans

Pro Se Bankruptcy Guide -- Filing without an attorney -- what you need to know

Federal Rules Committee

This research supports Suggestion 26-BK-3 to the Advisory Committee on Bankruptcy Rules

Proposing automated Section 1328(f) discharge bar screening in federal bankruptcy courts

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