The federal law offers a wide range of exemptions to bankruptcy Chapter 7 filers,

belonging to the states that have not opted out of the federal exemptions. These exemptions, like the state exemptions, typically help the debtors to keep their prized possession from liquidation.

Under federal exemptions the debtor is allowed to keep:

• Alimony and child support
• Homes having equity less than $ 17, 425
• Unemployment insurance
• Pensions and IRAs
• Personal items up to $9,300
• Jewelry and Clothes
• Vehicles and other public benefits

In addition to these normal exemptions, the federal law also offers another kind of exemption, called the Wild Card Exemption. It allows the debtor to protect their assets which are not covered by the normal federal exemptions. The total dollar amount of Wild Card Exemption allowed is $11,200.

Any property the debtor includes under Wild Card Exemption will be prevented from getting liquidated under Chapter 7 bankruptcy.

Wild Card Exemption can be applied to the following kinds of assets:

a) Non-exempt property: If the debtor uses Wild Card to protect the non-exempt property, then that property will be treated as if it were exempt up to the used Wild Card dollar amount.

b) Partially exempt property: Under federal law, certain assets are exempt, but only up to a certain amount. In case of these assets, the wild card exemption may compensate for the difference and allow the debtor to keep that property.

c) Cash: The debtor can even get cash and bank funds exempted with Wild Card Exemption.

The debtor can apply Wild Card Exemption to protect any of his property, but in some states, it is applicable to only personal properties.

However in some cases, the federal homestead exemption can also function like a Wild Card. If the debtor does not own a home, or does not have enough equity on his/her home mortgage to use up the homestead exemption, then 50% of homestead exemption can be used like the Wild Card Exemption in order to cover the debtor’s personal property that was not included in the actual Wild Card Exemption.

States where Wild Card Exemption can be used:

• Arkansas
• Connecticut
• District of Columbia
• Hawaii
• Massachusetts
• Michigan
• Minnesota
• New Hampshire
• New Jersey
• New Mexico
• Pennsylvania
• Rhode Island
• Texas
• Vermont
• Washington
• Wisconsin

So, if you are a Chapter 7 bankruptcy filer hailing from any of the above mentioned states, then you can have recourse to Wild Card Exemption and save most of your cherished possessions from the clutches of liquidation.

Here it is important to remember that the dollar amount of the Wild Card Exemption keeps on fluctuating depending upon inflation. So, do look out for the updated dollar amount whenever you file for Chapter 7 bankruptcy in your state. Also consult a reputable bankruptcy attorney to help you file your case, safeguard your interests and guide you effectively though the bankruptcy procedure.