Federal Bankruptcy Exemptions
Laws That Keep Your Creditors' Hands Off Your Property
Exemptions are laws passed by every state that allow you to protect certain
types of your property from your creditors when you file bankruptcy-such as
your home, car, pensions and IRAs, motor vehicles, clothing, tools, and other
important property. Federal law provides a number of exemptions that protect
your property, and your TotalBankruptcy.com attorney will be able to advise you
on which exemptions are best for you.
Homestead
Real property, including co-op or mobile home, to $16,150; unused portion of
homestead to $7,500 may be applied to any property.
Insurance
Disability, illness or unemployment benefits.
Life insurance payments for persons who depend on debtor, needed for support.
Life insurance policy with loan value, in accrued dividends or interest, to
$8,625.
Unmatured life insurance contract, except credit insurance policy.
Miscelenious
Alimony, child support needed for support.
Pensions
ERISA-qualified benefits needed for support.
Personal Property
Animals, crops, clothing, appliances, books, furnishings, household goods,
musical instruments to $425 per item, $8,625 total.
Health aids.
Jewelry to $1,075.
Lost earnings payments.
Motor vehicle to $2,575.
Personal injury recoveries to $16,150. (Not to include pain and suffering or
pecuniary loss.)
Wrongful death recoveries for person debtor depended on.
Public Benefits
Crime victims' compensation.
Public assistance.
Social Security.
Unemployment compensation.
Veterans' benefits.
Tools of Trade
Implements, books & tools of trade to $1,625.
Wages
None.
Special Notes
Married couples may double all exemptions!
All references are to 11 USC § 522. These exemptions were last adjusted on April
1, 1998, and are adjusted at every three-year interval ending on April 1
thereafter, to reflect changes in the Consumer Price Index.
Note: Exemptions may have changed since our last update. For the latest updates on these property exemptions, speak to a local bankruptcy lawyer.
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