National Bankruptcy Exemption Reference Guide
Your state-by-state roadmap for navigating which assets you can keep when filing for bankruptcy.
Understanding Bankruptcy Exemptions
When you file for bankruptcy—whether Chapter 7 or Chapter 13—the concept of exemptions is crucial. Exemptions determine which assets or property you can keep (known as “exempt property”), shielding them from creditors or liquidation. Each state has its own laws regarding what property is protected. Some states allow the use of either federal or state-specific exemptions, while other “opt-out” states require residents to use only their state’s exemption rules.
For example, Arizona is known as an “opt-out” state; residents there must use the Arizona-specific exemptions, without the option to use the separate federal exemption framework. In contrast, a number of other states permit debtors to choose between state rules or those found in federal bankruptcy exemptions.
50-State Exemption Reference Chart
In the chart below, you’ll find an alphabetical list of all 50 states, indicating whether they are an opt-out state (meaning no federal exemption option) or a dual-choice state (where the debtor can choose either state or federal exemptions). Each state name links to a dedicated local page for that state’s bankruptcy exemptions.
| State | Exemption Scheme |
|---|---|
| Alabama | Opt-Out (Requires using state exemptions) |
| Alaska | Dual-Choice (Can opt for state or federal exemptions) |
| Arizona | Opt-Out (Must use Arizona-specific exemptions) |
| Arkansas | Dual-Choice |
| California | Opt-Out (System 1 & System 2 Exemptions) |
| Colorado | Opt-Out |
| Connecticut | Dual-Choice |
| Delaware | Opt-Out |
| Florida | Opt-Out |
| Georgia | Opt-Out |
| Hawaii | Dual-Choice |
| Idaho | Opt-Out |
| Illinois | Opt-Out |
| Indiana | Opt-Out |
| Iowa | Opt-Out |
| Kansas | Opt-Out |
| Kentucky | Dual-Choice |
| Louisiana | Opt-Out |
| Maine | Dual-Choice |
| Maryland | Opt-Out |
| Massachusetts | Dual-Choice |
| Michigan | Dual-Choice |
| Minnesota | Dual-Choice |
| Mississippi | Opt-Out |
| Missouri | Opt-Out |
| Montana | Dual-Choice |
| Nebraska | Opt-Out |
| Nevada | Opt-Out |
| New Hampshire | Dual-Choice |
| New Jersey | Dual-Choice |
| New Mexico | Dual-Choice |
| New York | Dual-Choice (NY has its own state system or federal option) |
| North Carolina | Opt-Out |
| North Dakota | Opt-Out |
| Ohio | Opt-Out |
| Oklahoma | Opt-Out |
| Oregon | Opt-Out |
| Pennsylvania | Dual-Choice (Though the state’s exemptions are somewhat limited) |
| Rhode Island | Dual-Choice |
| South Carolina | Opt-Out |
| South Dakota | Opt-Out |
| Tennessee | Opt-Out |
| Texas | Opt-Out (Texas famously has generous homestead protection) |
| Utah | Opt-Out |
| Vermont | Dual-Choice |
| Virginia | Opt-Out |
| Washington | Dual-Choice |
| West Virginia | Opt-Out |
| Wisconsin | Dual-Choice |
| Wyoming | Opt-Out |
Note: “Opt-Out” states require the use of their state exemption laws. “Dual-Choice” states permit a debtor to select either state exemptions or the federal list found in 11 U.S.C. § 522.
BANKRUPTCY EXEMPTIONS CHANGE OFTEN
Bankruptcy exemptions often change and are subject to case law. Always confirm the latest statutes and case law. If you’re considering bankruptcy, it is essential to speak with an experienced local bankruptcy attorney.
References & Disclaimer
- U.S. Code Title 11, Section 522 – Federal Bankruptcy Exemptions
- Each state’s local page here references official legislative sites and statutes.
This guide is provided for informational purposes only and does not constitute legal advice. Consult a licensed attorney in your jurisdiction for guidance specific to your circumstances.
Types of Bankruptcy
There are several types of bankruptcy, each designed to address different financial situations. Understanding these types can help you determine which one might be applicable to your circumstances.
Understanding Chapter 7 Bankruptcy: A Guide
Chapter 7 bankruptcy is the most common form for individuals. It wipes the slate clean of unsecured debts for filers who qualify for a chapter 7 discharge.
Understanding Chapter 13 Bankruptcy Basics
In Chapter 13 you repay a portion of your debts over 3‑5 years, potentially lowering interest rates while stopping lawsuits, garnishments, and foreclosure.
Chapter 7 vs Chapter 13 Bankruptcy
This guide breaks down the key differences between Chapter 7 and Chapter 13 so you can decide which path is best for you.