If you file for Chapter 7 bankruptcy in Wisconsin, you can protect some or all of your property with Wisconsin’s bankruptcy exemptions. The bankruptcy exemptions in Wisconsin also play a role in Chapter 13 bankruptcy. Read on to learn about what property is covered by Wisconsin’s bankruptcy exemptions.
For a general overview of bankruptcy exemptions, visit the Bankruptcy Exemption topic page.
Wisconsin is one of the few states that allow debtors to choose between state and the federal bankruptcy exemptions. This means that bankruptcy filers may examine both sets of exemptions and elect the exemptions that better protect their assets.
Married couples filing a joint bankruptcy in Wisconsin may “double” the exemption amount (assuming they each have an ownership interest in the property).
Here are some of the most common exemptions available under Wisconsin law:
Alimony and child support needed for support. Wis. Stat. Ann. 815.18(3)(c).
Deposit accounts are exempt up to $5,000. Wis. Stat. Ann. § 815.18(3)(k).
Tombstones, coffins, cemetery lots owned by individuals, and other burial articles are exempt. Wis. Stat. Ann. § 815.18(3)(a).
Crime victims’ compensation is 100% exempt. Wis. Stat. Ann. § 949.07.
Fraternal benefit society benefits are 100% exempt. Wis. Stat. Ann. § 614.96.
Up to $75,000 in your home; $150,000 for married couples filing jointly. Sale proceeds exempt for up to two years if you intend to purchase another home (spouses may not double). Wis. Stat. Ann. § 815.20.
For more details about how the homestead exemption works in Wisconsin, see The Wisconsin Homestead Exemption.
Federal disability benefits and fire insurance proceeds are 100% exempt. Accident insurance proceeds are 100% exempt. Unmatured life insurance and annuity contracts are exempt. Dividends from unmatured life insurance and annuity contracts are exempt up to $150,000 (but only up to $4,000 if issued less than 2 years prior to filing). Life insurance payments are 100% exempt. Wis. Stat. Ann. § 815.18(i)-(f).
Up to $4,000 in motor vehicles; unused portion of $12,000 personal property exemption may be added. Wis. Stat. Ann. § 815.18(3)(g).
To learn more, visit The Wisconsin Motor Vehicle Exemption in Bankruptcy.
War pensions (including veterans' benefits). Wis. Stat. Ann. § 815.18(3)(n). Pensions are exempt for certain municipal employees, certain firefighters and police officers working in cities of more than 100,000 residents. Wis. Stat. Ann. § 815.18(3)(ef). Public employees. Wis. Stat. Ann. § 40.08.
Tax exempt retirement accounts (such as 401ks and IRAs) are exempt as per the federal rules and Wis. Stat. Ann. § 815.18(3)(j). For current amounts, see Your Retirement Plan in Bankruptcy.
A debtor may exempt up to $12,000 in the aggregate value of any household goods and furnishings, wearing apparel, keepsakes, jewelry and other articles of personal adornment, appliances, books, musical instruments, firearms, sporting goods, animals, or other tangible personal property held primarily for the personal, family or household use of the debtor or a dependent of the debtor. Wis. Stat. § 815.18(3)(d).
Personal injury recoveries to $50,000. Wrongful death recoveries needed for support. Wis. Stat. Ann. § 815.18(3)(i)(1)(c).
A debtor may also exempt any money paid into a college savings account or trust fund. Wis. Stat. Ann. § 815.18(3)(o),(p).
Social service payments. Wis. Stat. Ann. § 49.96.
Wages earned during imprisonment are 100% exempt. Wis. Stat. Ann. § § 303.065(4)(b), 303.08(3), and 303.10(7).
A debtor may exempt up to $15,000 in tools, equipment, inventory, farm products, and professional books, or in a closely-held business. Wis. Stat. Ann. § 815.18(3)(b).
Unemployment compensation is exempt except for child support claims. Wis. Stat. Ann. § 108.13.
Veterans’ war pension benefits are 100% exempt. Wis. Stat. Ann. § 815.18(3)(n).
A debtor may exempt 75% of his or net weekly income, limited to the extent reasonably necessary, but not less than 30 times the greater of state or federal minimum wage. Wis. Stat. Ann. § 815.18(3)(h).
(Learn more about wage exemptions in Wisconsin.)
Workers’ compensation is 100% exempt. Wis. Stat. Ann. § 102.27.
Wisconsin’s exemption amounts are adjusted periodically. To make sure you have the most recent figures, be sure to check for any updates at the official website of the Wisconsin State Legislature:http://legis.wisconsin.gov/Pages/default.aspx.
For additional information on how to research and find the latest exemption amounts, see our Legal Research Center.