What Qualifies as Tools of the Trade
Tools of the trade exemptions protect equipment, instruments, and supplies you need for your occupation. This can include: hand tools and power tools for tradespeople, computers and software for office workers, musical instruments for musicians, cameras for photographers, farm equipment for farmers, and professional libraries for lawyers.
The definition is interpreted broadly in most jurisdictions -- anything reasonably necessary for your employment qualifies.
Federal Exemption
The federal tools of the trade exemption (11 U.S.C. section 522(d)(6)) protects up to $2,800 in tools, implements, and professional books. This amount is relatively low, but can be supplemented with the wildcard exemption.
State Exemptions
State exemptions vary dramatically. Some highlights: Texas: unlimited tools of the trade (one of the most generous). Kansas: up to $7,500. California System 1: up to $9,525. Missouri: up to $3,000. Some states have no specific tools exemption.
If your state's exemption is insufficient, check whether you can use the federal exemptions instead (available in states that allow the choice).
Self-Employed Filers
Self-employed filers often have more at stake: commercial equipment, inventory, and specialized tools. The tools of the trade exemption can be critical for sole proprietors who need their equipment to earn a living.
In Chapter 7, protecting business equipment through exemptions lets you continue working. In Chapter 13, all assets are kept regardless, but the value of non-exempt assets increases your plan payments.
Frequently Asked Questions
Related Topics on This Site
Last updated: April 2026. Not legal advice.
Part of the Bankruptcy Transparency Network