Bankruptcy Exemptions in Wisconsin
What property you can keep in bankruptcy in Wisconsin: homestead, vehicle, wildcard and retirement exemptions, and whether you can choose the federal exemptions.
Short answer: Wisconsin has not opted out of the federal bankruptcy exemptions. The Eastern District of Wisconsin bankruptcy court's FAQ describes both the federal exemptions in the Bankruptcy Code (11 U.S.C. U.S. Bankruptcy Court, E.D. Wis., Frequently Asked Questions; Wis. Stat. § 815.18 (no opt-out provision)
| State or federal exemptions | Wisconsin has not opted out of the federal bankruptcy exemptions. The Eastern District of Wisconsin bankruptcy court's FAQ describes both the federal exemptions in the Bankruptcy Code (11 U.S.C. 522) and Wisconsin's state exemptions as available to Wisconsin debtors. Under federal law (11 U.S.C. 522(b)), a filer uses one list or the other, not a mix. Wisconsin's exemption statute (Wis. Stat. ch. 815, read at https://docs.legis.wisconsin.gov/document/statutes/815.pdf) contains no provision barring the federal exemptions. The fields below describe Wisconsin's state exemptions. |
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| Homestead exemption | A homestead selected and occupied by a resident owner is exempt up to $75,000. For land owned jointly by spouses (jointly, in common, or as marital property), each spouse may claim up to $75,000. If the home is sold, the exemption carries over to the sale proceeds, up to $75,000, for 2 years while held with the intention of buying another home. The exempt homestead includes the dwelling (including a condominium, mobile or manufactured home, or cooperative) and as much surrounding land as is reasonably necessary for use as a home, at least 0.25 acre if available and not more than 40 acres. Acreage definition read at https://docs.legis.wisconsin.gov/document/statutes/990.01(14). The exemption does not apply against mortgages, laborers' and mechanics' liens, purchase money liens, and taxes. |
| Car exemption | Motor vehicles up to $4,000 in total value. Any unused part of the $12,000 consumer goods exemption may be added to increase the motor vehicle exemption. Version read: 2023-24 Wis. Stats. updated through 2025 Wis. Act 247, published 10-1-26. Each spouse is entitled to his or her own dollar-limited exemption (Wis. Stat. § 815.18(8)). Source: Wis. Stat. § 815.18(3)(g), (d) |
| Retirement accounts | Assets held in, amounts payable under, and payments from retirement, pension, disability, death benefit, stock bonus, profit-sharing, annuity, IRA, Keogh, 401(k) or similar plans are exempt, if the plan complies with the Internal Revenue Code or meets the statute's employer-plan requirements. For owner-dominated plans, the exemption is limited to what is reasonably necessary to support the debtor and dependents. The exemption does not apply to court orders for child support, family support or maintenance, or to divorce, annulment or legal separation judgments. Other Wisconsin statutes separately protect public employee trust fund benefits (s. 40.08(1)) and certain city and county retirement systems, as listed in § 815.18(13). Source: Wis. Stat. § 815.18(3)(j) |
| Wages | 75% of the debtor's net income for each one-week pay period is exempt. The exemption is limited to what is reasonably necessary to support the debtor and dependents, but not less than 30 times the greater of the state or federal minimum wage. "Net income" means gross pay for personal services (or rents, dividends or interest) minus legally required federal and state tax withholding. |
More Wisconsin bankruptcy
FAQ
Can you use the federal bankruptcy exemptions in Wisconsin?
Wisconsin has not opted out of the federal bankruptcy exemptions. The Eastern District of Wisconsin bankruptcy court's FAQ describes both the federal exemptions in the Bankruptcy Code (11 U.S.C. 522) and Wisconsin's state exemptions as available to Wisconsin debtors. Under federal law (11 U.S.C. 522(b)), a filer uses one list or the other, not a mix.
How much home equity is protected in bankruptcy in Wisconsin?
A homestead selected and occupied by a resident owner is exempt up to $75,000. For land owned jointly by spouses (jointly, in common, or as marital property), each spouse may claim up to $75,000. If the home is sold, the exemption carries over to the sale proceeds, up to $75,000, for 2 years while held with the intention of buying another home. The exempt homestead includes the dwelling (including a condominium, mobile or manufactured home, or cooperative) and as much surrounding land as is reasonably necessary for use as a home, at least 0.25 acre if available and not more than 40 acres.
Can I keep my car in bankruptcy in Wisconsin?
Motor vehicles up to $4,000 in total value. Any unused part of the $12,000 consumer goods exemption may be added to increase the motor vehicle exemption.
Are retirement accounts protected in bankruptcy in Wisconsin?
Assets held in, amounts payable under, and payments from retirement, pension, disability, death benefit, stock bonus, profit-sharing, annuity, IRA, Keogh, 401(k) or similar plans are exempt, if the plan complies with the Internal Revenue Code or meets the statute's employer-plan requirements. For owner-dominated plans, the exemption is limited to what is reasonably necessary to support the debtor and dependents. The exemption does not apply to court orders for child support, family support or maintenance, or to divorce, annulment or legal separation judgments.
Are wages protected in bankruptcy in Wisconsin?
75% of the debtor's net income for each one-week pay period is exempt. The exemption is limited to what is reasonably necessary to support the debtor and dependents, but not less than 30 times the greater of the state or federal minimum wage. "Net income" means gross pay for personal services (or rents, dividends or interest) minus legally required federal and state tax withholding.
General legal information, not legal advice. Laws change and local rules can differ; check the linked official source or talk to a lawyer about your situation.