New Hampshire Bankruptcy Exemptions — What You Keep

Exemptions are the legal rules that determine what property you can keep when you file for bankruptcy. In New Hampshire, exemptions are critically important because they define the line between protected and at-risk assets §480:1; §480:4.

New Hampshire allows debtors to choose between state exemptions and the federal bankruptcy exemptions under §11 U.S.C. § 522(d). An attorney can help determine which set protects more of your property.

Homestead §480:1; §480:4

$400,000 in equity. New Hampshire allows debtors to choose between state and federal exemptions. The residence must have been continuously used as a primary residence for the previous 12 months, and proceeds from the sale of a qualifying residence stay protected if reinvested in a new primary residence within 6 months. Homestead exemptions may total no more than $550,000, or $400,000 for a single person, so spouses cannot simply double the individual figure. Full market value may be claimed as a homestead right where the debt resulted from unpaid medical bills or other debts directly resulting from terminal or catastrophic injury or illness, and the beneficiary of a qualifying trust may claim the exemption when the trust owns the property. The homestead right does not cancel or erase any debt and remains subject to the exceptions in RSA 480:4 (taxes, mortgages, mechanic's and association liens, and others), so equity within the cap does not by itself guarantee keeping the home. This protects equity in your primary residence — if your home equity is within this limit, you keep the house in bankruptcy.

Personal property §511:2

$3,500 in household furniture, plus separate exemptions for beds, clothing, provisions, and other specific items. New Hampshire personal property exemptions cover specific enumerated items rather than a general dollar cap. This covers household goods, furnishings, clothing, and everyday personal items.

Vehicle §511:2(XVII)

$4,000 in equity. This protects equity in your car — meaning the value of the vehicle minus what you owe on it.

Wages §512:21

50 times the federal minimum wage per week. This applies to wages already earned but not yet paid at the time of filing.

Wildcard §511:2(XVIII)

$1,000 in any property, plus up to $7,000 of any unused amount of the exemptions under paragraphs III, VI, VIII, IX, XVI, and XVII. A wildcard exemption can be applied to any property not fully covered by other exemptions.

Retirement accounts §511:2(XIX)

Any interest in a retirement plan or arrangement qualified for tax exemption purposes under federal law is exempt, including defined contribution and defined benefit plans, IRAs (including Roth and education IRAs), Keogh plans, and IRC section 457 deferred compensation plans. Retirement accounts receive strong protection in bankruptcy — both under state law and federal law §29 U.S.C. § 1056 (ERISA).

Tools of trade §511:2(IV)

$5,000 in professional tools, books, and implements of 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)?