The federal wildcard exemption in bankruptcy lets you protect up to $17,475 of any property you own when you file between April 1, 2025 and March 31, 2028. That ceiling combines a $1,675 base amount with up to $15,800 of unused federal homestead exemption rolled over on top. It’s available only if you elect the federal exemption system, which not every state allows.
Current Wildcard Amounts
The Judicial Conference of the United States adjusts federal bankruptcy dollar amounts every three years to reflect Consumer Price Index changes. The current figures took effect April 1, 2025 and apply to every case filed through March 31, 2028. The next adjustment is scheduled for April 1, 2028.1Federal Register. Adjustment of Certain Dollar Amounts Applicable to Bankruptcy Cases
Under 11 U.S.C. § 522(d)(5), the wildcard has two parts:2Office of the Law Revision Counsel. 11 USC 522 – Exemptions
- A base of $1,675 in any property, available to every filer who chooses federal exemptions.
- Up to $15,800 of the federal homestead exemption you didn’t use, added to the base.
Claim zero homestead protection and the full $15,800 spillover is yours, producing the $17,475 maximum. Use part of the homestead and only the leftover portion carries over, capped at $15,800.
How the Unused Homestead Spillover Works
The federal homestead exemption under § 522(d)(1) protects up to $31,575 of equity in your primary residence. If you rent, or you own but have little equity, that homestead value is going to waste. Section 522(d)(5) lets you redirect up to $15,800 of the unused portion into the wildcard, which can be applied to any property at all.2Office of the Law Revision Counsel. 11 USC 522 – Exemptions
Two things about that cap matter. First, the spillover maxes out at $15,800 even though the homestead itself is nearly twice that. You cannot redirect the full homestead. Second, a renter and a homeowner with zero equity end up in the same place: both get the full $17,475 wildcard.
Somewhere in the middle, the math shifts. Suppose you used $10,000 of the homestead to protect equity in your house. That leaves $21,575 of homestead unused, but the spillover caps at $15,800, so your wildcard tops out at $17,475 anyway. Only when you’ve used more than $15,775 of the homestead does the spillover start shrinking dollar for dollar.
The homestead exemption itself covers only your primary residence. The wildcard has no such limit. Once homestead value spills into the wildcard, it can shield equity in an investment property, cash, or anything else. The statute’s “any property” language is deliberately broad.
What You Can Protect With It
Other federal exemptions cover specific categories: up to $5,025 in a motor vehicle under § 522(d)(2), retirement accounts, household furnishings up to set limits.2Office of the Law Revision Counsel. 11 USC 522 – Exemptions The wildcard fills the gaps. Common uses include:
- Cash in checking and savings accounts, which have no dedicated federal exemption.
- Tax refunds based on income earned before you filed, which become part of the bankruptcy estate.
- Vehicle equity above the $5,025 motor vehicle limit. A car with $8,000 in equity leaves $2,975 exposed; wildcard dollars close the gap.
- Collectibles, electronics, and sports equipment that don’t qualify as household furnishings or tools of the trade.
- Portions of pending legal claims or lawsuit settlements that exceed the separate personal injury exemption under § 522(d)(11)(D).
The wildcard also reaches intangible property. Intellectual property, cryptocurrency, and digital assets all fit within the statute’s broad language.
How Property Gets Valued
Exemption limits are measured against fair market value on the date you file, meaning what a willing buyer would pay a willing seller with no pressure to close. For most personal property that’s well below retail. A laptop you bought for $1,500 might be worth $400 on the resale market, and it’s the $400 figure that counts.
Getting the valuation right is where the wildcard becomes strategic. Overestimate and you waste exemption dollars you could have used elsewhere. Underestimate and the trustee may challenge the number. Resale listings work as a starting point for common items; unusual or high-value assets may warrant a professional appraisal.
Doubling the Wildcard in a Joint Filing
Married couples who file jointly don’t share one set of exemptions. Under 11 U.S.C. § 522(m), the exemptions “apply separately with respect to each debtor in a joint case.”2Office of the Law Revision Counsel. 11 USC 522 – Exemptions That doubles every figure:
- Base wildcard: $1,675 × 2 = $3,350
- Maximum spillover: $15,800 × 2 = $31,600
- Combined maximum wildcard: $17,475 × 2 = $34,950
Each spouse must have an ownership interest in the property being exempted, though assets acquired during the marriage are commonly treated as jointly owned. Homestead doubles too. A couple can protect up to $63,150 in home equity between them before either needs to reach for the wildcard.
Whether You Can Even Use Federal Exemptions
Federal law lets each state block its residents from using the federal exemption list. Under 11 U.S.C. § 522(b)(2), you may elect the federal exemptions “unless the State law that is applicable to the debtor . . . specifically does not so authorize.”2Office of the Law Revision Counsel. 11 USC 522 – Exemptions Roughly two-thirds of states have opted out. Only about 20 jurisdictions, including the District of Columbia, allow filers to choose.
If you live in an opt-out state, the federal wildcard is off the table. Your state may have its own wildcard-style exemption, but the amounts and rules are different. Confirming eligibility is the first step in any planning.
The 730-Day Domicile Rule
Which state’s law controls depends on where you’ve lived. Under 11 U.S.C. § 522(b)(3)(A), the exemption law that applies is the law of the state where you were domiciled for the 730 days (about two years) immediately before filing. If you moved during that window, the controlling state is where you lived for most of the 180-day period just before the 730-day lookback begins.2Office of the Law Revision Counsel. 11 USC 522 – Exemptions
Someone who recently moved from an opt-out state to one that allows federal exemptions may still be stuck with the old state’s rules, and vice versa. Map the timeline out before filing.
The Wildcard in Chapter 13
The wildcard shows up most often in Chapter 7 discussions, where the trustee liquidates non-exempt property. It also affects Chapter 13 in a quieter way. A Chapter 13 repayment plan must pay unsecured creditors at least as much as they would have received in a hypothetical Chapter 7 liquidation, the “best interests of creditors” test.3United States Courts. Chapter 13 – Bankruptcy Basics
The calculation subtracts your exempt property from everything you own; what remains is the floor your plan must pay. Every dollar the wildcard shields lowers that floor. If your non-exempt assets total $20,000 and you cover $17,475 with the wildcard, unsecured creditors only need to receive $2,525 through the plan. For people weighing Chapter 7 against Chapter 13, that shift can decide the choice.
Claiming the Wildcard on Schedule C
You declare your exemptions on Schedule C (Official Form 106C), filed with your bankruptcy petition.4United States Courts. Schedule C – The Property You Claim as Exempt The form asks whether you’re using federal exemptions under § 522(d) or your state’s exemptions. Mixing the two systems isn’t allowed. Elect federal and every exemption you claim must come from the federal list; elect state and you lose access to the federal wildcard and homestead spillover entirely.
In states that offer the choice, the election is one of the highest-stakes decisions in the whole case. Some states have larger homestead protections but no wildcard equivalent. Others have lower homestead caps but a wildcard of their own that exceeds the federal figure. Running the numbers both ways before committing is the only reliable approach.