Bankruptcy Laws by State (2026)

Alabama bankruptcy filers must use state exemptions (Alabama does not allow federal bankruptcy exemptions):

• Homestead exemption: $16,450 per person — one of the lower homestead exemptions in the country
• Wildcard exemption: Alabama does NOT have a wildcard exemption
• Vehicle exemption: $3,950 per person
• Personal property: $7,900 in personal property
• Retirement accounts: Fully exempt, including IRAs, 401(k)s, and pensions
• Alabama does not allow filers to choose federal exemptions — state exemptions only
• Alabama's low exemptions mean more assets may be at risk in Chapter 7 bankruptcy

Arizona has specific bankruptcy exemptions that differ from the federal defaults:

• Arizona requires debtors to use state exemptions only — you cannot choose federal bankruptcy exemptions
• Homestead exemption: $250,000 per person for equity in your primary residence (A.R.S. § 33-1101)
• Arizona has relatively generous personal property exemptions including household goods, clothing, and one motor vehicle
• Wildcard exemption: $250 per individual for any property (A.R.S. § 33-1125)
• Arizona exemptions are considered relatively debtor-friendly for homeowners due to the substantial homestead protection
• Both Chapter 7 (liquidation) and Chapter 13 (reorganization) are available through U.S. Bankruptcy Courts in Arizona (Districts of Arizona)

Arkansas debtors can choose between state and federal bankruptcy exemptions — but federal exemptions are almost always better:

• Arkansas allows debtors to choose between Arkansas state exemptions or federal bankruptcy exemptions (11 U.S.C. § 522(d))
• Arkansas's homestead exemption is only $2,500 per person — one of the lowest in the country and rarely useful for homeowners with any equity
• The federal homestead exemption ($27,900 per person as of 2022, adjusted periodically) is almost always more beneficial for Arkansas homeowners
• Arkansas state exemptions: personal property up to $200, motor vehicle up to $1,200, wedding rings, tools of trade up to $750
• Federal exemptions: wildcard exemption of $1,475 + up to $13,950 of unused homestead; motor vehicle up to $4,450; retirement accounts generally fully exempt
• Federal Chapter 7 discharges most unsecured debts; Chapter 13 allows a repayment plan
• Means test applies for Chapter 7 eligibility

Connecticut allows bankruptcy filers to choose between state and federal exemptions — providing flexibility:

• Connecticut is one of the states that allows filers to choose federal bankruptcy exemptions (11 U.S.C. § 522(d)) instead of state exemptions — whichever set is more favorable
• State homestead exemption: $75,000 per individual (CGS § 52-352b(t))
• Federal homestead exemption: $27,900 per individual (adjusted periodically) — the federal option may be better depending on your circumstances
• Vehicle exemption: $3,500 under state law, or the federal exemption amount
• Wildcard exemption: Available under the federal exemption set — $1,475 plus up to $13,950 of unused homestead exemption
• Retirement accounts: Fully exempt under both state and federal exemptions
• The ability to choose between state and federal exemptions makes Connecticut more flexible than opt-out states

Bankruptcy cases for D.C. residents are filed in the U.S. Bankruptcy Court for the District of Columbia:

• Federal bankruptcy court: D.C. bankruptcy cases are handled by the U.S. Bankruptcy Court for the District of Columbia, located at 333 Constitution Avenue NW
• Exemptions: D.C. allows debtors to choose between D.C. exemptions and federal bankruptcy exemptions. D.C.'s homestead exemption is unique due to the district's high property values
• Homestead exemption: D.C. provides a homestead exemption of up to $74,950 for real property used as the debtor's residence (D.C. Code § 15-501). However, many D.C. filers choose the federal exemptions which may be more favorable
• Means test: D.C.'s median income for means test purposes reflects the high cost of living in the district, making it easier for more residents to qualify for Chapter 7
• Credit counseling: Required pre-filing credit counseling and post-filing debtor education courses must be from agencies approved by the U.S. Trustee

Georgia bankruptcy filers must use state exemptions (Georgia does not allow federal bankruptcy exemptions):

• Homestead exemption: $21,500 per individual ($43,000 for married couples filing jointly)
• Wildcard exemption: $10,000 per individual — can be applied to any property
• Vehicle exemption: $5,000 per individual
• Retirement accounts: Fully exempt, including IRAs, 401(k)s, and pensions
• Georgia exemptions are considered relatively moderate compared to other states
• Georgia does not allow filers to choose federal exemptions — state exemptions only

Hawaii has specific bankruptcy exemptions with notably low homestead protection:

• Hawaii allows debtors to choose between state or federal bankruptcy exemptions (HRS § 651-92)
• Homestead exemption: only $30,000 for a head of household or $20,000 for an individual — very low given Hawaii's extremely high property values (HRS § 651-92)
• This makes the federal exemptions often a better choice for Hawaii debtors, as the federal homestead exemption may be higher
• Hawaii exempts necessary household furnishings, clothing, and tools of the trade
• Both Chapter 7 (liquidation) and Chapter 13 (reorganization) are available through U.S. Bankruptcy Court, District of Hawaii
• Hawaii's high cost of living and low homestead exemption make bankruptcy planning particularly important

Idaho has specific bankruptcy exemptions that differ from federal defaults:

• Idaho requires debtors to use state exemptions only — you cannot choose federal bankruptcy exemptions (Idaho Code § 11-609)
• Homestead exemption: $175,000 for equity in your primary residence — one of the more generous exemptions in the region (Idaho Code § 55-1003)
• Idaho exempts personal property including household furnishings, clothing, and tools of the trade up to specified limits
• Idaho provides a wildcard exemption of $1,500 for any personal property
• Both Chapter 7 (liquidation) and Chapter 13 (reorganization) are available through U.S. Bankruptcy Court, District of Idaho
• Idaho's high homestead exemption provides significant protection for homeowners facing bankruptcy

Iowa is a highly debtor-friendly bankruptcy state — it uses state-only exemptions with an unlimited homestead:

• Iowa requires debtors to use Iowa state exemptions — unlike many states, Iowa does not allow debtors to choose federal exemptions
• Iowa's most powerful exemption is the unlimited homestead exemption — there is no dollar cap on homestead equity, limited only by acreage (1/2 acre in a city, 40 acres in a rural area)
• This makes Iowa extremely favorable for homeowners with significant equity compared to most states
• Personal property exemptions include: motor vehicle up to $7,000, retirement accounts (generally fully exempt), tools of the trade up to $10,000, and a wildcard of up to $1,000
• Federal Chapter 7 discharges most unsecured debts; Chapter 13 allows repayment over 3–5 years
• The means test applies for Chapter 7 eligibility based on Iowa median income

Kentucky requires bankruptcy filers to use state exemptions only — federal bankruptcy exemptions are not available:

• Homestead exemption: Only $5,000 per individual — one of the lowest in the nation. This means very little home equity is protected in bankruptcy.
• Vehicle exemption: $2,500 per individual
• Wildcard exemption: $1,000 per individual — can be applied to any property
• Retirement accounts: Fully exempt, including IRAs, 401(k)s, and pensions (KRS § 427.150)
• Kentucky does not allow filers to choose federal exemptions — state exemptions only (11 U.S.C. § 522(b)(2))
• Because of the very low homestead exemption, homeowners with significant equity may need to file Chapter 13 rather than Chapter 7 to protect their home

Louisiana bankruptcy filers must use state exemptions (Louisiana does not allow federal bankruptcy exemptions):

• Homestead exemption: $35,000 per person (up to 5 acres in a municipality or 200 acres on a rural tract) — constitutional protection under La. Const. Art. XII, § 9
• Wildcard exemption: Louisiana does NOT have a general wildcard exemption
• Vehicle exemption: $7,500 per person
• Community propertyA rule in 9 US states (AZ, CA, ID, LA, NV, NM, TX, WA, WI) that most income and property acquired during the marriage is owned equally by both spouses. In a divorce, it is typically split 50/50.: Louisiana is a community propertyA rule in 9 US states (AZ, CA, ID, LA, NV, NM, TX, WA, WI) that most income and property acquired during the marriage is owned equally by both spouses. In a divorce, it is typically split 50/50. state — both spouses' debts and assets are considered in bankruptcy, which can significantly affect filing strategy
• Retirement accounts: Fully exempt, including IRAs, 401(k)s, and pensions
• Louisiana does not allow filers to choose federal exemptions — state exemptions only

Maine has its own set of bankruptcy exemptions that filers may choose instead of federal exemptions:

• Choice of exemptions: Maine allows bankruptcy filers to choose between Maine state exemptions and federal bankruptcy exemptions (11 U.S.C. § 522(d)). You must choose one system — you cannot mix and match.
• Homestead exemption: Maine provides a homestead exemption of up to $47,500 (14 M.R.S.A. § 4422(1)). For individuals age 60 or older or physically or mentally disabled, the exemption increases to $95,000. This protects your primary residence equity from creditors in bankruptcy.
• Wildcard exemption: Maine's wildcard exemption allows you to protect up to $400 of any property, plus up to $7,500 of unused homestead exemption for any property (14 M.R.S.A. § 4422(15)).
• Vehicle exemption: Up to $5,000 in equity in one motor vehicle (14 M.R.S.A. § 4422(2)).
• Means test: Maine's median income is used to determine eligibility for Chapter 7 bankruptcy. Filers with income below the state median generally qualify for Chapter 7 liquidation rather than Chapter 13 repayment plan.

Maryland bankruptcy cases are filed in the U.S. Bankruptcy Court for the District of Maryland:

• Exemption choice: Maryland allows debtors to choose between state exemptions and federal bankruptcy exemptions, whichever is more favorable
• Maryland homestead exemption: Maryland's homestead exemption is $25,150 for real property used as the debtor's primary residence (MD Code, Courts & Judicial Proceedings § 11-504(f))
• Federal homestead alternative: The federal bankruptcy exemption for a homestead is often higher and may be more beneficial for Maryland filers
• Personal property exemptions: Maryland provides exemptions for household furnishings, clothing, tools of trade, and certain retirement accounts
• Cash and wildcard: Maryland provides a $6,000 cash exemption and various personal property exemptions that can protect essential assets
• Means test: Maryland's median income levels are among the highest in the country due to the D.C. metro area, which may help more residents qualify for Chapter 7

Massachusetts uses state exemptions only in bankruptcy (no option to choose federal exemptions), with a notably generous homestead exemption:

• MA homestead exemption: $500,000 per person automatically; up to $1,000,000 if a Declaration of Homestead is recorded at the Registry of Deeds (MGL c. 188)
• The homestead applies to your primary residence and protects equity from most creditors (exceptions include federal tax liens and mortgages)
• Personal property exemptions include: $15,000 in household goods, $500 in jewelry, $2,500 in a motor vehicle, and tools of the trade
• Retirement accounts (401(k), IRA, pensions) are fully exempt under MA law
• MA follows the federal means test for Chapter 7 eligibility
• Wage garnishment in MA is limited to the lesser of 15% of gross wages or the amount exceeding 50x the state minimum wage per week

Michigan offers a choice between state and federal bankruptcy exemptions, giving debtors flexibility:

• Michigan debtors can choose either state exemptions or federal exemptions — this choice is significant and depends on your assets
• Michigan homestead exemption: $44,625 per person of equity in a primary residence
• The federal exemption alternative is often preferred by non-homeowners due to its more generous wildcard exemption
• Federal wildcard exemption allows protecting additional personal property beyond specific categories
• Retirement accounts (401(k), IRA, pension) are generally fully exempt from bankruptcy under both state and federal systems
• Michigan median income thresholds determine eligibility for Chapter 7 vs. Chapter 13
• Michigan has a 720-day residency requirement for claiming state exemptions

Mississippi debtors use state-only exemptions in bankruptcy — the homestead is moderate at $75,000:

• Mississippi requires debtors to use Mississippi state exemptions — federal exemptions are not available in Mississippi
• Mississippi's homestead exemption is $75,000 per person (limited to 160 acres) — moderate compared to other states
• Personal property exemptions: motor vehicle up to $10,000, retirement accounts (generally fully exempt under ERISA), household goods and clothing up to $10,000, tools of the trade up to $10,000
• The homestead exemption must be recorded to be effective in bankruptcy
• Federal Chapter 7 discharges most unsecured debts; Chapter 13 allows repayment over 3–5 years
• The means test applies for Chapter 7 eligibility based on Mississippi median income
• Mississippi bankruptcy cases are filed in the Northern or Southern District of Mississippi

Missouri debtors use state-only exemptions in bankruptcy — homestead is limited at $15,000 per person:

• Missouri requires debtors to use Missouri state exemptions — federal exemptions are not available in Missouri
• Missouri's homestead exemption is only $15,000 per person ($30,000 for married joint filers) — relatively low, meaning homeowners with significant equity may lose it in Chapter 7
• Personal property exemptions: motor vehicle up to $3,000, retirement accounts (generally fully exempt), household goods up to $3,000, tools of the trade up to $3,000, a wildcard of up to $1,250 plus unused exemptions
• Missouri's low homestead exemption makes Chapter 13 (reorganization) a better option for many homeowners with equity
• Federal Chapter 7 discharges most unsecured debts; Chapter 13 allows repayment over 3–5 years while keeping property
• The means test applies for Chapter 7 eligibility based on Missouri median income

Nebraska has specific bankruptcy exemptions that differ from federal defaults:

• Nebraska requires debtors to use state exemptions only — you cannot choose federal bankruptcy exemptions
• Homestead exemption: $60,000 per person for equity in your primary residence (Neb. Rev. Stat. § 40-101)
• Nebraska exempts personal property including household goods, clothing, and necessary tools of the trade
• Nebraska has a wildcard exemption of $2,500 for any personal property
• Nebraska's homestead exemption is moderate — lower than many western states but adequate for Nebraska property values
• Both Chapter 7 (liquidation) and Chapter 13 (reorganization) are available through U.S. Bankruptcy Court, District of Nebraska

Nevada has specific bankruptcy exemptions that are among the most generous in the country:

• Nevada requires debtors to use state exemptions only — you cannot choose federal bankruptcy exemptions
• Homestead exemption: $605,000 per person for equity in your primary residence — one of the highest in the nation (NRS 21.090(1)(l))
• Nevada provides generous personal property exemptions including household goods, one vehicle up to $15,000, and private libraries
• Nevada exempts 75% of disposable earnings from garnishment (NRS 31.295)
• Both Chapter 7 (liquidation) and Chapter 13 (reorganization) are available through the U.S. Bankruptcy Court, District of Nevada
• Nevada's very high homestead exemption makes it a debtor-friendly state for homeowners filing bankruptcy

New Hampshire allows bankruptcy filers to choose between state and federal exemptions:

• Choice of exemptions: New Hampshire allows filers to choose between NH state exemptions (RSA 511:2) and federal bankruptcy exemptions (11 U.S.C. § 522(d)). You must choose one system — you cannot mix and match.
• Homestead exemption: NH provides a generous homestead exemption of up to $400,000 (RSA 480:1). This protects your primary residence equity from creditors in bankruptcy.
• Vehicle exemption: Up to $4,000 in equity in one motor vehicle (RSA 511:2, XVII-a).
• Wildcard exemption: New Hampshire's wildcard exemption protects up to $1,000 in any property, plus up to $7,000 of unused homestead exemption for any property.
• Means test: New Hampshire's median income is used to determine eligibility for Chapter 7 bankruptcy. Filers with income below the state median generally qualify for Chapter 7 rather than Chapter 13.

New Mexico requires debtors to use state exemptions in bankruptcy:

• New Mexico requires debtors to use state exemptions only — federal bankruptcy exemptions are not available
• Homestead exemption: $60,000 per person for equity in your primary residence (NMSA § 42-10-9)
• New Mexico exempts personal property including household goods, one motor vehicle up to $4,000, and tools of the trade up to $1,500
• Wage garnishment is limited to 25% of disposable earnings or the amount exceeding 40x the federal minimum wage
• Both Chapter 7 (liquidation) and Chapter 13 (reorganization) are available through the U.S. Bankruptcy Court, District of New Mexico
• New Mexico's modest homestead exemption makes pre-filing planning important for homeowners

North Carolina has its own bankruptcy exemptions that determine what property you can keep:

• NC uses state exemptions only — filers cannot choose between state and federal exemptions
• Homestead exemption: $35,000 per person ($70,000 for a married couple filing jointly) in equity in your primary residence
• Wildcard exemption: $5,000 that can be applied to any property, plus any unused portion of the homestead exemption up to $5,000
• NC exempts necessary household furnishings, clothing, and personal property to a reasonable extent
• The NC Constitution provides additional protections for certain personal property
• NC exemptions are considered moderate compared to other states — more generous than some Southern states but less than states like Texas or Florida
• Retirement accounts (401(k), IRA) are fully exempt under both federal and NC law

North Dakota bankruptcy filers use state exemptions, which offer moderate protections:

• Homestead exemption: North Dakota provides a homestead exemption of up to $100,000 for a debtor's primary residence (NDCC § 47-18-01). This protects the equity in your home from creditors in bankruptcy.
• Personal property exemptions: North Dakota exempts clothing, personal effects, and household goods reasonably necessary for maintenance. Motor vehicle exemption up to $1,200. Wildcard exemption of $7,500 can be applied to any property.
• Retirement accounts: Qualified retirement accounts (401(k), IRA, pension) are fully exempt from bankruptcy in North Dakota, consistent with federal protections.
• Means test: North Dakota's median income is used for the Chapter 7 means test. North Dakota's relatively low cost of living and moderate median income mean the means test threshold is lower than in high-cost states.
• Federal vs. state exemptions: North Dakota has opted out of the federal bankruptcy exemptions. Filers must use North Dakota's state exemptions, which may be more or less favorable depending on individual circumstances.

Ohio bankruptcy filers must use state exemptions only — Ohio does not allow filers to choose the federal exemption set:

• Homestead exemption: $145,425 per person (doubling for married couples filing jointly)
• Vehicle exemption: $4,000 per vehicle
• Wildcard exemption: Limited — Ohio provides a small general personal property exemption but no broad wildcard
• Retirement accounts: Fully exempt (IRAs, 401(k)s, pensions)
• Ohio's exemptions are considered moderate compared to other states — not as generous as some states but not as restrictive as others
• Ohio's means test uses state median income to determine Chapter 7 eligibility

Oklahoma is one of the most debtor-friendly states in the nation for bankruptcy:

• Homestead exemption: Oklahoma offers an unlimited value homestead exemption — up to 1 acre in an urban area or 160 acres in a rural area (Okla. Stat. tit. 31 § 2). This is one of the most generous homestead protections in the country.
• Oklahoma is an opt-out state — filers must use Oklahoma state exemptions and cannot choose federal bankruptcy exemptions
• Vehicle exemption: $7,500 per individual
• Wildcard exemption: $11,625 per individual — can be applied to any property (Okla. Stat. tit. 31 § 1(A)(20))
• Retirement accounts: Fully exempt, including IRAs, 401(k)s, and pensions
• The generous homestead exemption makes Chapter 7 more attractive for Oklahoma homeowners compared to many other states

Oregon provides moderate bankruptcy exemptions with some unique protections:

• Homestead exemption: Oregon provides a homestead exemption of $40,000 per individual ($50,000 for joint filers). This is moderate compared to states like Minnesota or Colorado.
• State or federal exemptions: Oregon allows filers to choose between Oregon state exemptions or federal bankruptcy exemptions — giving filers more flexibility to protect their assets
• Personal property: Oregon exemptions include household goods up to $3,000 per item, one motor vehicle up to $3,000, clothing, tools of the trade up to $5,000, and books/pictures/musical instruments up to $600
• Retirement accounts: All qualified retirement accounts (401(k), IRA, pension) are fully exempt under Oregon law
• Wildcard exemption: Oregon provides a $400 general wildcard exemption that can be applied to any property
• Wages: 75% of disposable earnings or the amount exceeding 30 times the federal minimum wage (whichever is greater) is exempt from garnishment

Rhode Island allows bankruptcy filers to choose between state and federal exemptions, with a notably generous homestead exemption:

• Choice of exemptions: Rhode Island allows filers to choose between RI state exemptions and federal bankruptcy exemptions (11 U.S.C. § 522(d)). You must choose one system — no mixing.
• Homestead exemption: Rhode Island provides a very generous homestead exemption of up to $500,000 (R.I. Gen. Laws § 9-26-4.1). This is one of the highest state homestead exemptions in the country and protects significant home equity from creditors.
• Vehicle exemption: Up to $12,000 in equity in one motor vehicle (R.I. Gen. Laws § 9-26-4(2)).
• Means test: Rhode Island's median income determines eligibility for Chapter 7 bankruptcy. Filers below the state median generally qualify for Chapter 7.
• Statute of limitationsThe deadline for filing a lawsuit after the event that caused the harm. It varies by claim type and state — for example, 2 years for personal injury in many states, 6 years for most written contracts. on debt: Rhode Island has a 10-year statute of limitationsThe deadline for filing a lawsuit after the event that caused the harm. It varies by claim type and state — for example, 2 years for personal injury in many states, 6 years for most written contracts. on written and oral contracts — one of the longest in the nation. This means creditors have a longer window to sue for unpaid debts before bankruptcy becomes necessary.

South Carolina bankruptcy filers can choose between state and federal exemptions:

• Homestead exemption: $63,250 per person (SC exemptions are relatively generous)
• Wildcard exemption: $5,725 per person — can be applied to any property
• Vehicle exemption: $5,725 per person
• Choice of exemptions: SC allows filers to choose either state or federal bankruptcy exemptions
• Retirement accounts: Fully exempt, including IRAs, 401(k)s, and pensions
• SC's homestead exemption is among the more generous state exemptions in the Southeast

Utah requires debtors to use state exemptions only in bankruptcy:

• Utah requires debtors to use state exemptions only — you cannot choose federal bankruptcy exemptions (Utah Code § 78B-5-513)
• Homestead exemption: $43,800 per person for equity in your primary residence (doubled for married couples filing jointly)
• Utah exempts certain personal property including clothing, furnishings, appliances, and one motor vehicle up to a specified value
• Wildcard exemption: limited — Utah does not provide a generous wildcard
• Both Chapter 7 (liquidation) and Chapter 13 (reorganization) are available through the U.S. Bankruptcy Court, District of Utah
• Utah's means test uses state median income figures — the relatively high cost of living along the Wasatch Front means more filers may qualify for Chapter 7

Vermont bankruptcy filers use state exemptions, which include a generous homestead exemption:

• Homestead exemption: Vermont provides a homestead exemption of up to $125,000 (27 V.S.A. § 101). This protects the equity in your primary residence from creditors in bankruptcy.
• Personal property exemptions: Vermont exempts clothing, household goods, tools of trade (up to $10,000), one motor vehicle (up to $2,500), and other necessary personal property. A wildcard exemption of $400 plus up to $7,575 of any unused portion of the homestead exemption can be applied to any property.
• Retirement accounts: Qualified retirement accounts (401(k), IRA, pension) are fully exempt from bankruptcy in Vermont, consistent with federal protections.
• Means test: Vermont's median income is used for the Chapter 7 means test. Vermont's moderate cost of living means the threshold is moderate compared to high-cost states.
• Federal vs. state exemptions: Vermont has opted out of the federal bankruptcy exemptions. Filers must use Vermont's state exemptions.

Virginia bankruptcy filers must use state exemptions — Virginia does not allow the federal bankruptcy exemption option:

• Virginia's homestead exemption is very low: $5,000 per person plus $500 per dependent (Va. Code § 34-4)
• Veterans may add a $10,000 homestead supplement (Va. Code § 34-4.1)
• Virginia's personal property exemptions are also limited compared to many states
• Virginia's wildcard exemption is restricted — there is a $1,000 general exemption for any property plus unused homestead up to $5,000
• Because of low exemptions, Chapter 13 is more common than Chapter 7 for Virginia homeowners seeking to protect their property
• Virginia's median income figures are used for the Chapter 7 means test
• Virginia exemptions are among the lowest in the country, making asset protection planning critical

Washington uses its own state exemptions in bankruptcy (federal exemptions are not available):

• Homestead exemption: $125,000 per person — among the highest in the region and applies to the debtor's principal residence
• Personal property: generous exemptions including household goods, clothing, and other personal items
• Tools of trade: up to $10,000 in tools, equipment, and materials used in your occupation
• Wages: the greater of 75% of disposable earnings or 35 times the state minimum wage is exempt from garnishment
• Washington exemptions are relatively debtor-friendly compared to many other states
• Motor vehicle exemption: $3,250 per vehicle
• Retirement accounts (IRAs, 401(k)s, pensions) are fully exempt

West Virginia requires debtors to use state exemptions in bankruptcy:

• West Virginia requires debtors to use state exemptions only — federal bankruptcy exemptions are not available
• Homestead exemption: $25,000 per person for equity in your primary residence (W. Va. Code § 38-9-1)
• West Virginia exempts personal property including household goods, one motor vehicle up to $2,400, and tools of the trade up to $1,500
• Wage garnishment is limited to 20% of disposable earnings — more protective than the federal 25% limit
• Both Chapter 7 (liquidation) and Chapter 13 (reorganization) are available through the U.S. Bankruptcy Court, Northern and Southern Districts of West Virginia
• West Virginia's relatively low homestead exemption means homeowners with significant equity should plan carefully before filing

Wisconsin debtors may choose between state or federal bankruptcy exemptions — each has distinct advantages:

• Wisconsin allows debtors to choose between Wisconsin state exemptions or federal bankruptcy exemptions (11 U.S.C. § 522(d))
• Wisconsin's state homestead exemption is $75,000 per person — more generous than the federal homestead exemption of $27,900
• Homeowners with significant equity should generally prefer the Wisconsin state homestead exemption
• Non-homeowners or renters typically benefit more from the federal wildcard and other exemptions (wildcard: $1,475 + up to $13,950 of unused homestead)
• Wisconsin state exemptions also include: retirement accounts (generally fully exempt), motor vehicle up to $4,000, household goods up to $12,000, tools of the trade up to $15,000
• Federal Chapter 7 discharges most unsecured debts; Chapter 13 allows repayment over 3–5 years
• The means test applies for Chapter 7 eligibility based on Wisconsin median income