Wildcard exemption is one of a few exemptions the Federal government and state governments allow in bankruptcy that protects 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 motor vehicle exemptions. 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 2022, the Federal wildcard exemption is $1,475 and up to $13,950 of any unused amount of the homestead exemption. See: Justia’s article, The Wildcard Exemption Under Bankruptcy Law.
See also: 11 U.S. Code § 522 - Exemptions and Bankruptcy Exemption Laws: 50-State Survey
[Last updated in July of 2024 by the Wex Definitions Team]