Legal Question in Bankruptcy in Wisconsin

Bankruptcy Exemptions for Home and Car--Can a Debtor Keep Them

Yes, in WI, a bankruptcy debtor is allowed to claim up to $40,000.00 equity in a home and $1,200 equity in a car and keep them if they are worth less than this. If the value minus any secured loans on that item are less than these limits, the bankrupt debtor can keep them even after filing bankruptcy. This assumes that the payments and other loan obligations on such items are current, since secured creditors can otherwise also repossess even after a bankruptcy. The exemptions under federal law are higher on cars and lower on homes--currently about $3,000 for vehicles and $30,000 for homes. You must elect either state or federal exemptions at the time of filing. Depending upon your situation, one set of exemptions might benefit you more than the other. Any qualified bankruptcy lawyer will discuss these options with you prior to proceeding.