Bankruptcy Laws by State
Bankruptcy law is federal, but exemptions — the property you can keep when you file — vary dramatically by state. Some states let you keep an unlimited homestead, while others protect very little. Find your state to see exactly what you can protect.
Key Takeaways
- Bankruptcy is a federal process, but exemptions are set by each state.
- Chapter 7 filing fee is $338. Chapter 13 is $313. Both nationwide.
- Homestead exemptions range from $0 to unlimited depending on the state.
- About 17 states let you choose between state or federal exemptions.
Chapter 7 vs. Chapter 13
Chapter 7 — Liquidation
Eliminates most unsecured debt (credit cards, medical bills). Takes 3-4 months. Must pass the means test (income below state median or no disposable income). Non-exempt assets may be sold to pay creditors.
Chapter 13 — Repayment Plan
Restructure debts into a 3-5 year payment plan. Keep all property. Catches up mortgage arrears and car payments. Available to anyone with regular income under the debt limits ($2.75M combined as of 2024).
State Exemptions Comparison
| State | Homestead | Vehicle | Federal Option? | Filing Fee |
|---|---|---|---|---|
| Alabama | $16,450 (up to 160 acres) | $3,950 per vehicle | No | $338 (Chapter 7) / $313 (Chapter 13) |
| Alaska | $72,900 | $4,850 | No | $338 (Chapter 7) / $313 (Chapter 13) |
| Arizona | $250,000 | $6,000 ($12,000 if disabled) | No | $338 (Chapter 7) / $313 (Chapter 13) |
| Arkansas | Unlimited (married, head of family on 1/4 acre urban or 80 acres rural); $2,500 (single, not head of family) | $1,200 | No | $338 (Chapter 7) / $313 (Chapter 13) |
| California | $300,000–$600,000 (varies by county median home price) | $7,500 (System 1) or $29,275 (System 2) | No | $338 (Chapter 7) / $313 (Chapter 13) |
| Colorado | $250,000 ($350,000 if elderly or disabled) | $15,000 (one motor vehicle used for work) | No | $338 (Chapter 7) / $313 (Chapter 13) |
| Connecticut | $75,000 ($150,000 if joint filers) | $3,500 | Yes | $338 (Chapter 7) / $313 (Chapter 13) |
| Delaware | $125,000 (must reside in the property) | $15,000 | No | $338 (Chapter 7) / $313 (Chapter 13) |
| District of Columbia | Unlimited equity in cooperative housing; otherwise per federal exemptions | $2,575 (if using DC exemptions) | Yes | $338 (Chapter 7) / $313 (Chapter 13) |
| Florida | Unlimited value (up to 1/2 acre in municipality or 160 acres outside) | $1,000 | No | $338 (Chapter 7) / $313 (Chapter 13) |
| Georgia | $21,500 (per debtor; $43,000 for married couple) | $5,000 | No | $338 (Chapter 7) / $313 (Chapter 13) |
| Hawaii | $30,000 ($48,000 for head of household or 65+) | $2,575 (using federal exemptions) or $3,225 (state) | Yes | $338 (Chapter 7) / $313 (Chapter 13) |
| Idaho | $175,000 | $10,000 | No | $338 (Chapter 7) / $313 (Chapter 13) |
| Illinois | $15,000 | $2,400 | No | $338 (Chapter 7) / $313 (Chapter 13) |
| Indiana | $22,750 | $10,250 in real or personal property (total) | No | $338 (Chapter 7) / $313 (Chapter 13) |
| Iowa | Unlimited value (1/2 acre in city, 40 acres elsewhere) | $7,000 | No | $338 (Chapter 7) / $313 (Chapter 13) |
| Kansas | Unlimited value (up to 1 acre in city, 160 acres on farmland) | $20,000 (one motor vehicle) | No | $338 (Chapter 7) / $313 (Chapter 13) |
| Kentucky | $5,000 | $2,500 | Yes | $338 (Chapter 7) / $313 (Chapter 13) |
| Louisiana | $35,000 (up to 5 acres in city, 200 acres elsewhere) | None specific (use homestead or tools of trade) | No | $338 (Chapter 7) / $313 (Chapter 13) |
| Maine | $80,000 ($160,000 if 60+ or physically/mentally disabled) | $7,500 | No | $338 (Chapter 7) / $313 (Chapter 13) |
| Maryland | None (Maryland does not have a homestead exemption) | None specific | No | $338 (Chapter 7) / $313 (Chapter 13) |
| Massachusetts | $500,000 (automatic; must file declaration for full protection) | $7,500 | Yes | $338 (Chapter 7) / $313 (Chapter 13) |
| Michigan | $44,625 (up to 40 acres in city, 160 acres elsewhere) | $3,575 | Yes | $338 (Chapter 7) / $313 (Chapter 13) |
| Minnesota | $450,000 (up to 1/2 acre in city, 160 acres elsewhere) | $5,000 ($50,000 if modified for disability) | Yes | $338 (Chapter 7) / $313 (Chapter 13) |
| Mississippi | $75,000 (up to 160 acres) | No specific exemption (use personal property exemption) | No | $338 (Chapter 7) / $313 (Chapter 13) |
| Missouri | $15,000 | $3,000 | No | $338 (Chapter 7) / $313 (Chapter 13) |
| Montana | $350,000 | $4,000 | No | $338 (Chapter 7) / $313 (Chapter 13) |
| Nebraska | $60,000 | $2,400 (no specific vehicle exemption; use personal property) | No | $338 (Chapter 7) / $313 (Chapter 13) |
| Nevada | $605,000 | $15,000 | No | $338 (Chapter 7) / $313 (Chapter 13) |
| New Hampshire | $120,000 | $4,000 | Yes | $338 (Chapter 7) / $313 (Chapter 13) |
| New Jersey | None (New Jersey has no homestead exemption) | No specific vehicle exemption | Yes | $338 (Chapter 7) / $313 (Chapter 13) |
| New Mexico | $60,000 | $4,000 | Yes | $338 (Chapter 7) / $313 (Chapter 13) |
| New York | $179,975–$299,975 (varies by county) | $4,825 | No | $338 (Chapter 7) / $313 (Chapter 13) |
| North Carolina | $35,000 ($60,000 if 65+ and spouse is deceased) | $3,500 | No | $338 (Chapter 7) / $313 (Chapter 13) |
| North Dakota | $100,000 | $1,200 (or $32,000 for vehicle modified for disability) | No | $338 (Chapter 7) / $313 (Chapter 13) |
| Ohio | $145,425 | $4,060 | No | $338 (Chapter 7) / $313 (Chapter 13) |
| Oklahoma | Unlimited value (up to 1 acre in city, 160 acres rural) | $7,500 | No | $338 (Chapter 7) / $313 (Chapter 13) |
| Oregon | $40,000 ($50,000 for joint filers) | $3,000 | No | $338 (Chapter 7) / $313 (Chapter 13) |
| Pennsylvania | None (Pennsylvania has no homestead exemption under state law) | No specific vehicle exemption | Yes | $338 (Chapter 7) / $313 (Chapter 13) |
| Rhode Island | $500,000 | $12,000 | Yes | $338 (Chapter 7) / $313 (Chapter 13) |
| South Carolina | $67,325 (per debtor; no acreage limit) | $6,325 | No | $338 (Chapter 7) / $313 (Chapter 13) |
| South Dakota | Unlimited value (1 acre in town, 160 acres elsewhere) | $4,750 | No | $338 (Chapter 7) / $313 (Chapter 13) |
| Tennessee | $5,000 ($7,500 if married; $25,000 if 62+ or disabled) | No specific vehicle exemption (use personal property) | No | $338 (Chapter 7) / $313 (Chapter 13) |
| Texas | Unlimited value (up to 10 acres urban, 100 acres rural single / 200 acres family) | $2,500 per licensed household member (one vehicle each) | No | $338 (Chapter 7) / $313 (Chapter 13) |
| Utah | $43,300 ($86,600 for married couple) | $3,000 | No | $338 (Chapter 7) / $313 (Chapter 13) |
| Vermont | $125,000 | $2,500 | Yes | $338 (Chapter 7) / $313 (Chapter 13) |
| Virginia | $5,000 ($10,000 if 65+ or disabled) | $6,000 | No | $338 (Chapter 7) / $313 (Chapter 13) |
| Washington | $125,000 (or actual homestead value, whichever is greater, up to county median) | $3,250 | Yes | $338 (Chapter 7) / $313 (Chapter 13) |
| West Virginia | $25,000 | $2,400 | Yes | $338 (Chapter 7) / $313 (Chapter 13) |
| Wisconsin | $75,000 | $4,000 (aggregate of all vehicles) | No | $338 (Chapter 7) / $313 (Chapter 13) |
| Wyoming | $20,000 ($40,000 for married couple) | $2,400 | No | $338 (Chapter 7) / $313 (Chapter 13) |
Frequently Asked Questions
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Will I lose my house if I file bankruptcy?
Not necessarily. If your equity is within your state's homestead exemption, you can keep your home in Chapter 7. In Chapter 13, you keep all property. States like Florida, Texas, and Kansas have unlimited homestead exemptions.
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How long does bankruptcy stay on my credit report?
Chapter 7 stays on your credit report for 10 years from the filing date. Chapter 13 stays for 7 years. However, many people see credit score improvements within 1-2 years after discharge as old debts are removed.
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Can bankruptcy eliminate student loans?
Generally no, unless you can prove 'undue hardship' in an adversary proceeding, which is a difficult standard. However, recent court decisions have made it somewhat easier in some circuits.
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Do I need a lawyer to file bankruptcy?
Not required, but strongly recommended. Bankruptcy involves complex federal rules, and mistakes can result in losing property, case dismissal, or even fraud allegations. Many bankruptcy attorneys offer free consultations.
Legal Disclaimer: FreeNetLaw provides general legal information, not legal advice.
The information on this site is not a substitute for consultation with a licensed attorney.
Laws vary by jurisdiction and change frequently. Always verify information with official sources and
consult a qualified attorney for advice about your specific situation.