Idaho Bankruptcy Exemptions — What You Keep

Exemptions are the legal rules that determine what property you can keep when you file for bankruptcy. In Idaho, exemptions are critically important because they define the line between protected and at-risk assets §55-1003.

Idaho requires use of state exemptions only — federal bankruptcy exemptions under §11 U.S.C. § 522(d) are not available. This means the specific Idaho exemption amounts below control what you can protect.

Homestead §55-1003

$175,000 in equity. Must file a homestead declaration for automatic protection, but exemption may be claimed in bankruptcy regardless. This protects equity in your primary residence — if your home equity is within this limit, you keep the house in bankruptcy.

Personal property §11-605(1)

$7,500 total in household furnishings and goods, appliances, wearing apparel, animals, books, musical instruments, and family portraits and heirlooms ($1,000 limit on any one item). This covers household goods, furnishings, clothing, and everyday personal items.

Vehicle §11-605(3)

$10,000 in equity. This protects equity in your car — meaning the value of the vehicle minus what you owe on it.

Wages §11-207

75% of disposable earnings (or amount exceeding 30× federal minimum wage). This applies to wages already earned but not yet paid at the time of filing.

Wildcard §11-605(10)

$1,500 (any tangible personal property). A wildcard exemption can be applied to any property not fully covered by other exemptions.

Retirement accounts §11-604A

ERISA-qualified plans, IRAs, and PERSI (Idaho public employees) are exempt. Retirement accounts receive strong protection in bankruptcy — both under state law and federal law §29 U.S.C. § 1056 (ERISA).

Tools of trade §11-605(3)

$10,000 in implements, professional books, business equipment, and tools of the trade. This protects the equipment you need to earn a living.

• In Chapter 7, non-exempt property can be liquidated by the trustee. High exemptions mean you keep more.
• In Chapter 13, the "best interests of creditors" test means your plan must pay unsecured creditors at least what they would have received if non-exempt assets were liquidated in Chapter 7. Higher exemptions can reduce your required plan payment.

• Is your home equity within the homestead limit, or does it exceed the cap?
• Do you have a vehicle loan that reduces your equity below the exemption?
• Are there assets that could be reclassified or converted to exempt form before filing?
• Would waiting to file change the exemption calculation (e.g., recent large deposit, bonus, tax refund)?