What is a wildcard exemption?
Unlike category-specific exemptions (homestead for your home, vehicle for your car), a wildcard exemption can be applied to any property. It gives you flexible protection for assets that do not fit neatly into other exemption categories -- like cash in a bank account, a tax refund, cryptocurrency, or valuable personal property.
The federal wildcard under 11 U.S.C. § 522(d)(5) provides $1,475 plus up to $13,950 of any unused portion of the homestead exemption. If you do not own a home (or do not need the full homestead exemption), the total wildcard can reach $15,425 per debtor -- or $30,850 for a married couple filing jointly.
Selected state wildcard exemptions
| State/Scheme | Wildcard Amount | Notes |
|---|---|---|
| Federal (§ 522(d)(5)) | $1,475 + up to $13,950 unused homestead | Max $15,425 per debtor |
| California (System 2) | $33,650 | Available if not using System 1 homestead |
| Missouri | $600 | Very limited |
| Ohio | $1,325 | Can be applied to any property |
| New York | $1,175 | State wildcard; federal wildcard also available |
| Michigan | $1,475 + $13,950 unused homestead (federal) | Can use federal exemptions |
| Georgia | $1,200 per debtor | Plus unused portion of $21,500 homestead |
| Indiana | $10,250 | Generous standalone wildcard |
| Kentucky | $1,000 | Federal exemptions also available |
Strategic uses of the wildcard
- Protect cash and bank accounts. Money in checking or savings accounts on the filing date is property of the estate. The wildcard can cover it.
- Cover tax refunds. Expected tax refunds are assets. If you file in January, your upcoming refund may need wildcard protection.
- Top up vehicle equity. If your car equity exceeds the vehicle exemption by $2,000, use $2,000 of wildcard to cover the gap.
- Protect non-traditional assets. Cryptocurrency, digital assets, valuable domain names, or pending settlements can all be covered by the wildcard.
You cannot mix federal and state exemptions. Under § 522(b)(1), you must choose one system or the other. If your state allows federal exemptions and the federal wildcard is more generous, you may want to use the entire federal scheme -- even if the state has better exemptions in some categories.