Understanding Alaska Bankruptcy Exemptions: Your Guide to Protecting Assets

Filing for bankruptcy is a complex process, but securing your financial future starts with a clear understanding of the law. Alaska is one of a handful of states that gives debtors a critical choice: use the Alaska State Exemptions or the Federal Bankruptcy Exemptions.

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

Updated on November 2, 2025.

As a bankruptcy attorney and professor published in this field, I know that getting this decision right is the most important step in an Alaska bankruptcy filing, as it can mean the difference between protecting your home and losing it. This guide is built on direct statutory analysis and legal expertise to ensure you have the most reliable, up-to-date information on Alaska’s bankruptcy exemptions.

Listen: The Professor’s Audio Briefing.

Key Points from the Professor

• Choice is Crucial: Alaska allows you to choose between the state or federal exemption systems. Both should be compared for maximum asset protection..
• Residency Rules are Strict: You must reside in Alaska for 730 days to qualify for Alaska’s state exemptions.
• The Homestead Advantage: The Alaska homestead exemption is significantly more generous than the federal exemption, making the state system a likely choice for homeowners.
• Protecting Your Business: Alaska offers a specific, valuable exemption for the “Tools of the Trade” that business owners could take advantage of.

How Many Bankruptcies Are Filed in Alaska?

Understanding the volume of filings provides essential context for the state’s use of bankruptcy law.

For the year ending in 2023, 7,830 Chapter 7 bankruptcies were filed, of which 7,639 were for individuals. The remaining 191 were businesses. There were 1,664 Chapter 13 cases filed. Considering the generous homestead exemption in Alaska, it’s not surprising that more Chapter 7 bankruptcies were filed.

Bankruptcy Chapter	Total Filings	Individual Filings	Business Filings
Chapter 7	7,830	7,639	191
Chapter 13	1,664	N/A	N/A

The high rate of Chapter 7 filings, compared to Chapter 13, is consistent with states that have generous exemption schemes, like Alaska’s. This often allows debtors to protect their property while successfully discharging most of their debt.

Alaska Bankruptcy Exemptions: Current Amounts and Expert Commentary

Exemptions allow you to protect certain assets in bankruptcy, such as your home or other personal property. Each state has different exemptions, but by knowing your exemptions in advance compared to the value of your assets, you can understand what assets are protected. Let’s review the Alaska bankruptcy exemptions.

Requirements to File for Bankruptcy in Alaska

First and foremost, to file in Alaska, you must reside in the state and have lived there at least 91 days out of the last 180 days. However, you must reside in “The Last Frontier” for 730 days to qualify for the exemptions. If you have not lived in Alaska for 730 days, you would apply for bankruptcy exemptions from the state you resided in before. The blog post below explains in detail the exemptions when relocating.

Finally, the Bankruptcy Code in Section 522 requires that you have owned the home a total of 1,215 days for Alaska’s homestead exemption to apply.

• Where to File for Bankruptcy: Understanding Residency Requirements

If you are planning to relocate to or from Alaska, compare the bankruptcy exemptions of both states to determine which state better protects your assets. This will determine if you need to file sooner rather than later or do the reverse.

It’s important to note that while bankruptcy law is federal law, the Bankruptcy Code allows each state to decide whether it will have its own exemptions or use the federal exemptions. So, exemptions do vary per state. That’s why the residency issue is so important.

However, Alaska is unique because residents can choose between state and federal bankruptcy exemptions. You can’t pick and choose exemptions over specific assets, but you can decide which set of exemptions you want to use.

Applying the Alaska Bankruptcy Exemptions

Professor’s Note: While researching for my textbook, I encountered numerous instances where state statutes had not yet updated their published figures. Always verify the most current amounts directly with the U.S. Bankruptcy Court for the District of Alaska.

For example, the homestead exemption is $72,900 as of April 1, 2024. At times, even the state statutes need to be corrected. For example, as of today, the Alaska Legislature under Statute 9.38.010 still has the exemption amount at $54,00. So, my best advice is to triple-check everything.

Applying the Homestead Exemption

Determining what amount of your equity is exempt would depend on the value of your home minus the mortgage. The average home value in Alaska is $362,098, according to Zillow. According to Mortgage News Daily, the average mortgage balance is $287,651. Subtracting those two figures leaves $74,447, and subtracting the homestead exemption results in $1,547. Usually, a trustee wouldn’t be interested in a minimal amount of nonexempt property.

Compare this to the federal exemption of $27,900 under 11 USC § 522(d)(1). In this case, there would be $46,547 in nonexempt equity, forcing you into Chapter 13 bankruptcy. So, of course, the Alaska bankruptcy exemptions are more beneficial in this case. 

With non-exempt equity, such as the above example, would mean filing Chapter 13 bankruptcy to keep the home. Chapter 13 would allow the nonexempt portion to be paid back over 36-60 months.

Personal Property Bankruptcy Exemptions

Personal property also has exemptions, such as household goods, furniture, and clothing. Note that your personal property is valued at the fair market value, but I prefer to say “garage sale” value.

The personal property exemptions are $4,050, $1,350 for jewelry, and $1,350 for pets. As a pet lover, don’t freak out about your pets. Remember, it’s the current value of your pet. A trustee doesn’t want your dog or cat.

The Tools of the Trade Bankruptcy Exemption

The tools of the trade exemption is only offered in some states. It is a specific exemption that relates to the assets of a business. Many states use the personal property exemption for business assets. However, the tools of the trade exemption is a good way to protect your business and is an exemption under Alaska law. The exemption amount is $3,780.

Other Exemptions

I consider it important to point out that burial plots are exempt in Alaska. In Florida, my state, that is considered personal property. When it’s an elderly couple with limited means who have paid off their plot, this can be devastating. It’s my opinion that every state should protect burial plots. I’ve had one too many elderly couples lose their plots or, worse, lose a plot next to their deceased spouse.

Alaska’s Motor Vehicle Exemption

The Alaska motor vehicle exemption is $4,050. Remember to find out the value of your car and subtract any outstanding loan. You can use sites like Kelley Blue Book to estimate your car’s value.

Exemption Category	Alaska State Exemption (Current as of April 1, 2024)	Federal Exemption (Current as of April 1, 2024)	Notes on Application
Homestead (Primary Residence)	$72,900 (Ref: AK Stat. § 09.38.010)	$27,900 (Ref: 11 U.S.C. § 522(d)(1))	Alaska is typically superior for homeowners. You must also satisfy the 1,215-day home ownership requirement under 11 U.S.C. § 522(p).
Motor Vehicle	$4,050	$4,450 (Ref: 11 U.S.C. § 522(d)(2))	Apply this to your equity (Value minus Loan Balance). The federal amount is slightly higher here.
Household Goods, Furniture, etc.	$4,050 (Aggregate)	$14,875 (Aggregate, max $700/item)	Alaska’s aggregate limit is much lower. Debtors with significant household property may lean towards the federal system.
Tools of the Trade (Business Assets)	$3,780	$2,800 (Ref: 11 U.S.C. § 522(d)(6))	A key exemption for Alaskan small business owners to protect essential equipment.
Pets	$1,350	N/A (May use the Wildcard)	Pets are valued at their “garage sale” value. Trustees are typically not interested in household pets.
Jewelry	$1,350	$1,875 (Ref: 11 U.S.C. § 522(d)(4))

The Professor’s Bankruptcy Tip

The value estimates you see on consumer websites like Zillow (for homes) or Kelly Blue Book (KBB) (for cars) are useful for a quick check, but they are not official court appraisals. A bankruptcy trustee or a creditor can and will challenge these numbers if they think your asset is worth more.

For the bankruptcy trustees in Alaska, please follow this link. If you need the contact information for the U.S. Bankruptcy Court District of Alaska, please click here. Alaska’s statutes can be viewed via this link.

Below is my YouTube video discussing the Alaska bankruptcy exemptions.

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 also listen to my podcast on Spotify.

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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