Current Bankruptcy Exemption Amounts & Accurate Statutory Text: 11 U.S.C. § 522

As a professor and bankruptcy attorney for more than two decades, I understand the importance of accuracy and up-to-date statutes and figures. This page is dedicated to providing the most current, correct, and officially adjusted text of 11 U.S.C. § 522 to correct the common inaccuracies found in many online resources.

By Alexander Hernandez, J.D., Professor, and Author of Consumer Bankruptcy Law (Routledge).

Updated on November 19, 2025.

The Importance of Accuracy in Bankruptcy Law

The exemption section of the Bankruptcy Code, 11 U.S.C. § 522, is the cornerstone of consumer bankruptcy. It determines which property a debtor may keep (“exempt”) from liquidation by the Chapter 7 Trustee or from being counted toward plan payments in Chapter 13.

However, the specific dollar amounts listed in § 522(d) are subject to mandatory adjustments every three years by the Judicial Conference of the United States. Many popular online legal databases and static websites fail to keep these figures updated, leading to potentially disastrous errors in a bankruptcy filing.

The same holds true for the average state income used for the means test, which is updated twice a year. You can find your state’s latest income figures via this post.

Key Federal Exemption Amounts Under 11 U.S.C. § 522(d) as of April 1, 2025.

The following dollar figures reflect the mandatory adjustments to the Federal Bankruptcy Exemptions, effective April 1, 2025. These apply only when a debtor is permitted to and elects the Federal exemptions under §522(b)(2). Remember that state exemptions vary per state and if your state allows you to choose between the federal or state exemptions, you should compare both to see which one benefits you the most.

Choosing between the Federal or state exemption is critical to your case. If your state permits the election, you must carefully compare both options to determine which schedule offers maximum protection for your assets. This comparison is particularly crucial for debtors who have recently relocated, as the §522(b)(3)(A) residency rules dictate which state’s exemptions apply, which is based on the debtor’s domicile during the 730 days immediately preceding the filing. For a detailed breakdown of these complex residency requirements, please consult this detailed post.

Exemption Category	Statutory Citation	Current Amount (Effective 04/01/2025)	Original Amount (Pre-2005)
Homestead Exemption	§522(d)(1)	$31,575	$15,000
Motor Vehicle	§522(d)(2)	$5,025	$2,400
Household Goods / Furnishings	§522(d)(3) (Aggregate)	$16,850	$8,000
Jewelry	§522(d)(4)	$2,125	$1,000
“Wildcard” Exemption	§522(d)(5) (Non-Homestead Portion)	$1,675	$800
“Wildcard” Exemption	§522(d)(5) (Homestead Unused Portion, Max)	$15,800	$7,500
Tools of the Trade	§522(d)(6)	$3,175	$1,500
Personal Injury/Wrongful Death	§522(d)(11)(D)	$31,575	$15,000
IRA and Retirement Funds Cap	§522(n)	$1,711,975	$1,000,000

Current Statutory Language and Key Provisions

While the dollar amounts are critical to protect your assets, a clear understanding of the statutory language is equally important for understanding exemption elections, domicile rules, and lien avoidance.

11 U.S.C.A. § 522 Exemptions Definitions

In this section,

(1) “dependent” includes spouse, whether or not actually dependent; and

(2) “value” means the fair market value of the property, either on the date the bankruptcy case is filed, or, if the property is added to the estate later, on the date it becomes part of the estate.

Choosing Your Exemptions

General Rule: Even though most of your property becomes part of the bankruptcy estate under section 541, you can choose to protect certain property by claiming exemptions. You must choose either:

Option 1 – Federal Exemptions Subsection (d):
You can claim the specific exemptions listed in subsection (d), unless the law of your state (as described in paragraph (3)(A)) doesn’t allow it.

Option 2 – State or Other Federal Exemptions:
You can instead claim:

• Any property exempt under other federal laws (not subsection (d)), or
• Any property exempt under state that applies to the place where you’ve lived (your domicile) for the 730 days (2 years) before filing.

Commentary: Focusing on Lien Avoidance

One of the most powerful debtor tools in §522, often overlooked, is the ability to avoid certain liens under §522(f). The Lien Impairment Formula is a key part of lien avoidance under 11 U.S.C. § 522(f). The Lien Impairment Formula determines if a lien interferes with an exemption.

What Is the Lien Impairment Formula?

Under 11 U.S.C. § 522(f)(2)(A), the lien impairment formula is: L + O + E > V.

“L” is the lien to be avoided, “O” is all other liens, “E” is the exemption amount, and “V” is the property value. If the formula is true, the lien is avoided to the extent of the impairment.

In other words, if the sum of the lien you’re trying to avoid, all other liens on the property, and the exemption amount exceeds the fair market value of the property, then the lien impairs the exemption and may be avoided.

Formula Breakdown

Let’s say you’re trying to avoid a judicial lien on your home. You’d calculate:

• Judicial lien amount (the one you want to avoid.)
• Other liens (e.g., mortgage, HELOC).
• Exemption amount, and
• Fair market value of the property (as of the petition date).

If the Judicial Lien + Other Liens + Exemption > Property Value, then the judicial lien impairs the exemption and can be avoided, but only to the extent of the impairment. To avoid the lien, you would need to file a motion under §522(f).

Other Exemptions to Consider

There are other exemptions subject to adjustment that need to be considered.

Retirement Funds Cap §522(n)

The total of retirement funds, specifically IRAs under §408 or §408(A) that can be exempted is capped, though this cap may be increased if the interests of justice require. The current cap is $1,711,975, up from $1,512,350 prior to 2025.

Homestead Limitations (BAPCPA Provisions)

These sections impose limits on homestead equity acquired through non-exempt transfers or within the 1215-day period preceding the filing.

• §522(p), 1215-Day Homestead Cap: $214,000. Up from $189,050$, prior to 2025.
• §522(q), Felony/Securities Debt Cap: $214,000. Up from $189,050$, prior to 2025.

The Wildcard

The “Wildcard” exemption in §522(d)(5) is another form of protection for assets. For the non-homestead portion, it increased from $1,475 to $1,675. The unused homestead portion increased from $13,950 to $15,800. This allows debtors to use the available funds to protect other assets like bank accounts, tax refunds, or non-exempt portions of other property.

Important Information on the Full Statutory Text

The complete text of 11 U.S.C. § 522 is extensive. I focus on providing expert analysis and time-sensitive dollar figures because major legal platforms frequently fail to keep the monetary amounts current.

For the definitive, unedited text of all non-monetary provisions and definitions, Irecommend consulting the official U.S. Code. Be cautious, however, as the dollar figures on those official sites are often not updated to reflect the Judicial Conference adjustments.

The Professor’s Take: Why These Updates Matter

Since the Bankruptcy Code requires these adjustments, it is crucial that you are current not only on the exemption amounts, but the state average income for the means test. Otherwise, you may file the wrong chapter in bankruptcy and your case could be subject to dismissal, or worse, your assets aren’t protected.

Colleges and universities can purchase my bankruptcy law textbook directly from Routledge Publishing. Paralegals and students who are buying single copies can do so via Amazon Books. To access my YouTube channel, click this link.

You can learn more about filing for bankruptcy and the bankruptcy petition via this link. Information on the bankruptcy court system, contact information for trustees, and your state’s exemptions can be found here. The federal bankruptcy exemptions are listed here. The latest version of the 341 Meeting of the Creditors can be found here.

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