About the Federal Exemptions
Section 522(d) of the Bankruptcy Code provides a set of exemptions that debtors can use to protect property from the bankruptcy estate. These amounts are adjusted every three years based on the Consumer Price Index. The amounts listed below reflect the most recent adjustment.
You can use the federal exemptions only if your state has not opted out. About 17 states plus the District of Columbia allow you to choose between the federal and state exemption systems. In an opt-out state, you must use the state exemptions instead -- but certain federal non-bankruptcy exemptions (like Social Security protections) still apply.
Spouses filing jointly can each claim the full set of federal exemptions, effectively doubling every amount listed below. This is sometimes called "stacking" exemptions.
Complete Federal Exemption Table
All amounts are per debtor. Married couples filing jointly can double these amounts.
| Section | Property | Amount |
|---|---|---|
| 522(d)(1) | Homestead -- equity in your primary residence, including co-op or burial plot | $27,900 |
| 522(d)(2) | Motor vehicle -- equity in one motor vehicle | $4,450 |
| 522(d)(3) | Household goods -- furniture, appliances, clothing, animals, crops, musical instruments, books (per item cap) | $700 per item, $14,875 total |
| 522(d)(4) | Jewelry -- jewelry held primarily for personal, family, or household use | $1,875 |
| 522(d)(5) | Wildcard -- any property of the debtor's choice, plus any unused portion of the homestead exemption | $1,475 + up to $13,950 of unused homestead |
| 522(d)(6) | Tools of the trade -- implements, professional books, and tools used in your trade or business | $2,800 |
| 522(d)(7) | Unmatured life insurance -- any unmatured life insurance contract (not credit life) | Unlimited (contract itself) |
| 522(d)(8) | Life insurance loan value -- accrued dividends/interest or loan value of unmatured life insurance | $14,875 |
| 522(d)(9) | Health aids -- professionally prescribed health aids for debtor or dependent | Unlimited |
| 522(d)(10)(A) | Social Security -- Social Security benefits | Unlimited |
| 522(d)(10)(B) | Veterans' benefits -- VA disability, pension benefits | Unlimited |
| 522(d)(10)(C) | Disability benefits -- disability, illness, or unemployment compensation | Unlimited |
| 522(d)(10)(D) | Alimony and support -- alimony, support, or separate maintenance (reasonably necessary) | As needed for support |
| 522(d)(10)(E) | Pension/profit sharing -- payments under stock bonus, pension, profit-sharing, annuity, or similar plan (reasonably necessary) | As needed for support |
| 522(d)(11)(A) | Crime victim compensation -- award under a crime victim's reparation law | Unlimited |
| 522(d)(11)(B) | Wrongful death -- payment on account of the wrongful death of a person the debtor was a dependent of | As needed for support |
| 522(d)(11)(C) | Life insurance proceeds -- payment under a life insurance contract for a person the debtor was a dependent of | As needed for support |
| 522(d)(11)(D) | Personal injury -- payment for personal bodily injury (not pain and suffering or pecuniary loss) | $27,900 |
| 522(d)(11)(E) | Loss of future earnings -- payment for loss of future earnings of debtor or dependent | As needed for support |
| 522(d)(12) | Retirement funds -- funds in tax-exempt retirement accounts (IRAs, 401(k)s, etc.) | IRA: $1,512,350; ERISA plans: unlimited |
Key Details and Strategy
The Wildcard Is the Most Powerful Exemption
Section 522(d)(5) provides $1,475 that can be applied to any property. But its real power comes from the unused homestead provision: if you do not use the full $27,900 homestead exemption (for example, because you rent), you can add up to $13,950 of that unused amount to the wildcard. That gives renters up to $15,425 in wildcard protection they can apply to any asset -- cash, bank accounts, tax refunds, vehicles, legal claims, or anything else.
Household Goods: Per-Item and Aggregate Limits
Section 522(d)(3) has two caps. No single item can exceed $700 in value, and the total for all household goods cannot exceed $14,875. In practice, used household goods have very low resale value, so most people's furniture, clothing, and appliances fall well within these limits. Trustees rarely challenge household goods exemptions.
ERISA Retirement Accounts Are Separately Protected
While Section 522(d)(12) covers retirement accounts, ERISA-qualified plans (401(k)s, 403(b)s, defined-benefit pensions) have an additional layer of federal protection under the Employee Retirement Income Security Act itself. This means they are protected even in opt-out states where federal bankruptcy exemptions are unavailable. See our retirement accounts guide for details.
Amounts Are Adjusted for Inflation
The dollar amounts in Section 522(d) are adjusted every three years under Section 104(a) of the Bankruptcy Code. The adjustment is based on the change in the Consumer Price Index. This means the amounts increase over time to keep pace with inflation, though they can never decrease.
Important: You cannot mix federal and state exemptions. You must choose one system or the other. If you elect the federal exemptions, you must use Section 522(d) for everything. You cannot pick the federal homestead and a state vehicle exemption, for example.
Legal References
- 11 U.S.C. Section 522(d) -- Federal exemptions
- 11 U.S.C. Section 522(b) -- Election between federal and state
- 11 U.S.C. Section 104 -- Inflation adjustments
- State exemptions overview -- Which states allow federal exemptions
- 1328f.com -- Free discharge eligibility screening tool