Wisconsin Bankruptcy Exemptions — What You Keep
What property you can protect when filing for bankruptcy in Wisconsin — homestead, personal property, vehicle, wage, and retirement exemptions.
Wisconsin's exemption system
Wisconsin 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.
Key Wisconsin exemptions
Homestead §815.20
$75,000 in equity. Wisconsin homestead exemption applies to the principal residence. No declaration is required. This protects equity in your primary residence — if your home equity is within this limit, you keep the house in bankruptcy.
Personal property §815.18(3)(d)
$12,000 aggregate in household goods, furnishings, and apparel. This covers household goods, furnishings, clothing, and everyday personal items.
Vehicle §815.18(3)(g)
$4,000 in equity in one motor vehicle. This protects equity in your car — meaning the value of the vehicle minus what you owe on it.
Wages §815.18(3)(h)
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 §815.18(3)(n)
$5,000 (any personal property). A wildcard exemption can be applied to any property not fully covered by other exemptions.
Retirement accounts §815.18(3)(j); §40.08(1)
IRC-qualified plans, IRAs, 401(k)s, and Keogh plans are exempt under § 815.18(3)(j), with owner-dominated plans limited to amounts reasonably necessary for support; Wisconsin Retirement System and other Department of Employee Trust Funds benefits are exempt under § 40.08(1); retirement benefits and allowances from 1st class city retirement systems are exempt under § 62.63(4). Retirement accounts receive strong protection in bankruptcy — both under state law and federal law §29 U.S.C. § 1056 (ERISA).
Tools of trade §815.18(3)(b)
$15,000 in tools, equipment, and professional library used in trade. This protects the equipment you need to earn a living.
Wisconsin exemption comparison
| Homestead | Personal property | Wildcard | |
|---|---|---|---|
| What it protects | Equity in your primary residence §11 U.S.C. § 522 | Household goods, furnishings, clothing §11 U.S.C. § 522 | Any property not covered by other exemptions §11 U.S.C. § 522 |
| Wisconsin limit | $75,000 in equity §815.20 | $12,000 aggregate in household goods, furnishings, and apparel §815.18(3)(d) | $5,000 (any personal property) §815.18(3)(n) |
| Key limitation | Primary residence only — not investment property §11 U.S.C. § 522 | Individual item and aggregate caps may apply §11 U.S.C. § 522 | Total cap across all wildcard-claimed property §11 U.S.C. § 522 |
| Strategic value | Can be the largest exemption | Protects everyday necessities | Fills gaps left by specific exemptions |
How exemptions affect chapter choice
- 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.
Common exemption planning considerations
- 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)?
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Frequently Asked Questions
General answers to common questions. Specific outcomes depend on your facts and timing.
If you have a deadline, court notice, or upcoming hearing, mention it when requesting assistance so timing can be evaluated promptly.
Related guides
- $75,000 in equity
- Wisconsin homestead exemption applies to the principal residence. No declaration is required.
- $12,000 aggregate in household goods, furnishings, and apparel
- 75% of disposable earnings (or amount exceeding 30× federal minimum wage)