Bankruptcy exemptions calculator

Estimates only. This calculator uses federal exemption amounts (2025 figures). Many states have their own exemption systems - some more generous, some less. Some states don't allow the federal system at all. A bankruptcy attorney confirms the exact limits available in your district. See our full disclaimer.

Bankruptcy exemptions estimator

Filing details

Filing status Joint filers can double most federal exemptions.

Bankruptcy chapter Exemptions apply in both chapters but matter most in Chapter 7.

Real property

Enter your equity, not the full market value. Equity = current market value minus the outstanding mortgage balance.

Home equity (primary residence) Federal homestead exemption: $27,900 single / $55,800 joint.

Other real estate equity Investment properties, vacation homes. Federal homestead doesn't apply to non-primary real estate.

Vehicles

Enter equity in each vehicle (market value minus loan balance).

Vehicle 1 equity Federal motor vehicle exemption: $4,450 single / $8,900 joint.

Vehicle 2 equity

Personal property and financial assets

Enter current values or balances.

Household goods and furnishings Federal: up to $700 per item, $14,875 total single / $29,750 joint.

Clothing and apparel Federal: $700 per item limit applies. Most everyday clothing is fully exempt.

Jewelry Federal jewelry exemption: $1,875 single / $3,750 joint.

Tools of the trade / work equipment Federal: $2,800 single / $5,600 joint.

Cash, bank accounts, and savings Covered by federal wildcard: $1,475 + unused homestead up to $13,950 single.

Retirement accounts (401k, IRA, pension) ERISA-qualified accounts (401k, 403b, pension) are fully exempt. IRA: up to $1,512,350.

Other assets

Life insurance cash value Federal: up to $14,875 in cash value / $29,750 joint.

Personal injury award or claim (if any) Federal: up to $27,900 for personal bodily injury (not pain and suffering).

Estimated unused homestead exemption (if home equity is below $27,900) Unused homestead can be applied as a wildcard to any other property. Auto-calculated below.

Your bankruptcy exemptions estimate

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A bankruptcy attorney reviews your full asset list, confirms which state or federal exemptions apply, and structures your filing to protect the maximum amount. Free initial consultation in most areas.

How do bankruptcy exemptions work?

When you file Chapter 7, a trustee is appointed to review your assets. Any asset that isn't protected by an exemption can be sold to pay unsecured creditors.

Exemptions are dollar limits set by federal law or state law that protect specific categories of property. If your home equity is $20,000 and the federal homestead exemption is $27,900, the trustee can't touch your home - it's fully covered.

If your equity exceeds the exemption limit, the trustee may sell the asset, pay you the exemption amount, and distribute the rest to creditors. This is why knowing your exemptions before filing is critical. Use the Chapter 7 means test calculator alongside this tool to get a full picture of your Chapter 7 eligibility and risk.

Can you choose between federal and state exemptions?

In about half of U.S. states, you can choose whichever system - federal or state - is more favorable for your situation. In the other half, state law mandates you use the state exemption system only.

States that require their own system include California, Florida, Texas, Virginia, and several others. Some state systems are dramatically more generous than federal (Florida and Texas have unlimited homestead exemptions). Others are far less generous.

This is one of the most impactful decisions in a bankruptcy filing. A bankruptcy attorney compares both systems for your specific asset profile and recommends the better option. The bankruptcy chapter selector can also help you decide whether Chapter 7 or Chapter 13 makes more sense given your exemption situation.

What is the wildcard exemption and how does it work?

The federal wildcard exemption lets you protect $1,475 of any property, plus up to $13,950 of any unused homestead exemption - for a maximum wildcard of $15,425 per single filer ($30,850 joint).

This is one of the most powerful and least-understood exemptions. If you don't own a home (or your home equity is zero), you can apply the full $15,425 wildcard to cash, a second vehicle, a tax refund, or any other non-exempt asset you want to protect.

Timing your filing to minimize non-exempt assets - for example, after spending a tax refund on necessary expenses - is a legal and common strategy. A bankruptcy attorney advises on this during the consultation.

Which assets are always fully protected in bankruptcy?

ERISA-qualified retirement accounts - 401(k), 403(b), pension plans, and profit-sharing plans - are fully exempt under federal law with no dollar cap. There is no limit on how much you can protect in these accounts.

IRAs (traditional and Roth) are protected up to $1,512,350 per person under the federal exemption. This limit adjusts every 3 years. For most filers, retirement savings are 100% safe in bankruptcy.

Social Security benefits, disability benefits, veterans' benefits, and most public assistance payments are also fully exempt. You don't lose these in bankruptcy. Check the debt discharge estimator to understand which debts these protected assets will help you eliminate.

What happens to non-exempt assets in Chapter 7?

If a trustee identifies a non-exempt asset worth liquidating, they'll sell it and distribute the proceeds to creditors. You receive your exemption amount from the proceeds first.

In practice, most Chapter 7 cases are "no-asset" cases - the trustee finds nothing worth selling after exemptions. The U.S. Trustee Program reports that roughly 95% of Chapter 7 cases are no-asset cases.

If you have significant non-exempt assets you want to keep, Chapter 13 may be the better path. You keep everything and instead pay creditors the value of your non-exempt assets through a 3-to-5-year repayment plan. The Chapter 13 repayment calculator estimates what that monthly payment would look like.

Frequently asked questions

It depends on your home equity and your state's homestead exemption. If your equity is within the exemption limit, the trustee can't sell your home. You must also continue making mortgage payments - bankruptcy discharges your personal liability but doesn't eliminate the mortgage lien. If your equity exceeds the exemption, the trustee may sell the home, pay you the exemption amount, and distribute the rest to creditors. Chapter 13 is often the better choice when home equity significantly exceeds the homestead exemption and you want to keep the property.

Yes, in almost all cases. ERISA-qualified plans (401k, 403b, pension, profit-sharing) are fully exempt with no dollar cap under federal law regardless of which state you live in. Traditional and Roth IRAs are exempt up to $1,512,350 per person. The U.S. Supreme Court confirmed this protection in Rousey v. Jacoway (2005). Don't withdraw retirement funds to pay debts before filing - those withdrawals become non-exempt cash and you lose both the protection and the retirement savings.

Usually yes, up to the exemption limit. The federal motor vehicle exemption protects $4,450 of equity per single filer ($8,900 joint). If your car equity is within that range, the trustee won't touch it. Equity above the limit is technically non-exempt, but the wildcard exemption can cover the gap in many cases. If you still owe money on the car loan, you must either reaffirm the debt (keep paying) or surrender the vehicle - bankruptcy discharges your personal liability but the lender's lien remains.

The federal wildcard exemption lets you protect $1,475 of any property, plus up to $13,950 of unused homestead exemption - a maximum of $15,425 per single filer, or $30,850 for joint filers. You can apply it to cash, a second vehicle, tax refunds, or any other property you want to protect. If you don't own a home or your equity is well below the homestead limit, the wildcard becomes a powerful tool. Not all states that mandate their own exemption system have an equivalent wildcard.

No - and doing so is one of the most serious mistakes a bankruptcy filer can make. Trustees look back 2 years (and sometimes longer) for fraudulent transfers. A transfer to a family member for less than fair market value within the look-back period can be reversed (the asset is pulled back into the estate) and may result in denial of your discharge or criminal charges for bankruptcy fraud. The legal way to protect assets is to use the available exemption system properly - that's what they're designed for.