Federal Property Exemptions | Lizarraga Law Firm, PLLC

Practice Areas / Bankruptcy / Chapter 7 / Federal Property Exemptions"

Depending on what assets a debtor needs to protect it may be more advantageous for them to use Federal Property Exemptions. If a debtor is not claiming a homestead exemption under New York law, Federal Property Exemptions may offer several higher exemption values for personal property, allowing the debtor to protect more property.

Federal Property Exemptions are set forth in 11 U.S.C. § 522. Federal exemptions include, but are not limited, to:

• Homestead Exemption- 11 U.S.C. § 522(d)(1).
Real property or personal property used as a residence by the debtor or a spouse, not exceeding $31,575 per debtor (doubled for joint filers) in value above liens and encumbrances, is exempt.

• Motor Vehicle- 11 U.S.C. § 522(d)(2).
One motor vehicle not exceeding $5,025 in value above liens and encumbrances is exempt.

• Household Goods and Furnishing- 11 U.S.C. § 522(d)(3).
Household goods and furnishings up to a value of $16,850 are exempt. The "replacement value" of all household goods and furnishings must be estimated on Schedules B and C.

• Jewelry- 11 U.S.C. § 522(d)(4).
Assorted jewelry not exceeding $2,125 in value may be claimed as exempt.

• Aggregate Individual Exemption for Personal Property- 11 U.S.C. § 522(d)(5)
This "wild card" exemption allows a debtor to use up to $1,675 towards any property that is not otherwise exempt. In addition the debtor can also apply any unused amount of the homestead exemption up to $15,800 towards any other property that is not already exempt. This exemption is particularly helpful to non-homeowners (tenants) who then have an $17,475 exemption they can apply towards any property (such as the non-exempt equity in a motor vehicle). This exemption can be divided up between several pieces of non-exempt property.

• Tools of Trade - 11 U.S.C. § 522(d)(6).
Tools of trade, including books and equipment, not exceeding a value of $3,175 are exempt.

Sources

Federal: amounts effective April 1, 2025 through March 31, 2028, as adjusted every three years under 11 U.S.C. § 104 — 11 U.S.C. § 522(d).

This information is general and is not legal advice. Amounts are adjusted periodically; consult an attorney about your case.