wildcard exemption

Wildcard exemption is one of a few exemptions that federal and state governments allow in bankruptcy to protect some of the debtor’s personal assets from creditors. In federal bankruptcy and in states where the wildcard exemption is allowed, the wildcard exemption can be applied to any of a person’s assets like a sentimental heirloom. Most other exemptions only apply to specific items like the homestead or a motor vehicle. The wildcard exemption often can be used on its own or used in combination with another exemption like for a vehicle worth more than the motor vehicle exemption. As of 2026, the federal wildcard exemption is $1,675 and up to $15,800 of any unused amount of the homestead exemption. See: The National Consumer Law Center. 

See also: 11 U.S. Code § 522 - Exemptions and Bankruptcy Exemption Laws: 50-State Survey

[Last reviewed in April of 2026 by the Wex Definitions Team] 

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