Chapter 7 Bankruptcy State Protection
Some states itemize their exemptions, putting strict dollar limits on certain types of property. Other states offer more general protections or fully protect certain types of property.
Here, we’ll highlight states that offer the strongest and most wide-ranging exemptions for bankruptcy filers.
While about half of the states offer home exemptions of $50,000 or more, these states offer complete Chapter 7 bankruptcy protection for almost every home:
Some of these states, like Texas and Oklahoma, offer straight 100 percent exemptions for your home. Other states, like Nevada and Massachusetts, protect homes valued at up to $500,000. Laws like this will cover almost every house.
Honorable mention goes to Minnesota and Montana. These states both offer upwards of $250,000 and more in home protection for anyone filing Chapter 7 bankruptcy.
New Hampshire, New Mexico, Washington, Idaho and Arizona all offer $100,000 or more in home protections.
In these cases, most people can file bankruptcy without fear of losing their home.
But a home is more than just a building. Most states offer complete protection for professionally prescribed health aids, photos and religious books.
Many states also offer generous protections for clothing, furniture, appliances, food and fuel. Other common complete exemptions include church pews and cemetery plots.
Here are some highlights of states with considerable exemptions:
- California: All needed household furnishings, appliances and clothes plus almost $7,000 for jewelry and heirlooms.
- Connecticut: 100 percent of clothes, bedding, furniture, appliances, tools, books, instruments, farm animals and wedding rings are exempt.
- Delaware: This state has some of the strongest protections against wage garnishment, plus $15,000 exemption for all household furnishing and up to $25,000 for a non-home piece of property.
- Mississippi: $75,000 for home and up to $10,000 in property including car, home goods and clothes. Any items worth $200 or less doesn’t count towards the $10,000.
- Nevada: The state’s $12,000 exemption for household goods can cover electronics. You may also keep $10,000 in trade tools, $5,000 in books, art, musical instruments and jewelry and $15,000 for a car.
- New Hampshire: The state’s unique laws include $100,000 for your home, $4,000 for a car, all clothes and bedding and $3,500 for furniture. The following are fully exempt: 1 hog, 1 pig, 6 sheep, 1 cow or horse, stove, refrigerator and utensils.
- Oklahoma: In addition to your home, you can keep a vehicle worth up to $7,500, all farming tools and $2,000 worth of guns.
- South Carolina: Joint owners of a home can keep one worth up to $100,000. You also get $5,000 towards a car and the $4,000 household items exemption may be used to protect musical instruments.
- Texas: In addition to the entirety of your home, you can keep up to $60,000 worth of personal property. You can use this to protect a car, furniture, jewelry or anything. Religious books and health aids don’t count towards the total.
- Vermont: $75,000 residence; all of your stove, heater, refrigerator, freezer, water heater; $5,000 worth of crops; wedding ring; $7,000 worth of other, unused exemptions.
Note: Keep in mind all laws are complex. If you need legal advice or want to fully understand how these laws affect you, please speak with a local attorney.
These laws may have changed since our last update. For the latest information on your state’s bankruptcy laws, speak to a local bankruptcy lawyer.
