Attorney at Debt Advisors Law Offices
Practice Areas: Chapter 7 Bankruptcy, Chapter 13 Bankruptcy, Stop Foreclosure
Filing for bankruptcy can feel overwhelming, especially when you are unsure about what will happen to your home, car, or personal belongings. The truth is that bankruptcy laws in Wisconsin include a system of exemptions designed to protect essential property. These rules help ensure that individuals can keep the basics they need to move forward while resolving overwhelming debt.
This guide explains how bankruptcy exemptions work in Milwaukee, the differences between federal and state rules, and why understanding these laws is an important step in protecting your financial stability.
Bankruptcy exemptions are laws that allow you to keep certain property even while addressing debts through bankruptcy. Instead of losing everything, you are permitted to protect a portion of your assets. These exemptions exist to give debtors a fresh start while preserving basic necessities such as housing, transportation, and household goods.
The role of exemptions is especially significant in Chapter 7 bankruptcy, where non-exempt assets may be liquidated. In Chapter 13 bankruptcy, exemptions still matter because they affect how much you may need to repay creditors through a repayment plan.
When filing in Milwaukee, you must choose either the federal exemption system or the Wisconsin state system. You cannot mix and match. The decision depends on which set of rules better protects your specific assets.
The Wisconsin statutes governing exemptions include Wis. Stat. § 815.20 for homestead property and Wis. Stat. § 815.18 for personal property. Full details can be reviewed on the Wisconsin State Legislature website.
Bankruptcy exemptions in Wisconsin are designed to protect the most important parts of your daily life. Below, you’ll find the major categories of property that can be shielded during bankruptcy.
Wisconsin provides strong protection for homeowners. Up to $75,000 of equity in a primary residence is protected from creditors. This safeguard helps prevent families from losing their homes due to financial hardship.
Both federal and state exemptions allow you to keep up to $4,000 of equity in one motor vehicle. This ensures you can continue commuting to work, school, or essential appointments.
Wisconsin law protects up to $12,000 worth of personal property, including clothing, household goods, and furnishings. These items are considered necessary for daily living.
Wisconsin offers a $1,200 wildcard exemption. This flexible option can be applied to protect property not covered by other categories. It is often used to safeguard valuable but non-essential items.
| Exemption Type |
Federal Limit |
Wisconsin State Limit |
| Homestead | Up to $25,150 equity in primary residence | Up to $75,000 equity in primary residence |
| Vehicle | Up to $4,000 equity in one motor vehicle | Up to $4,000 equity in one motor vehicle |
| Personal Property | Household goods and clothing (varied limits) | Clothing, household goods, furnishings up to $12,000 |
| Wildcard | Up to $1,325 plus unused homestead (max $12,575) | Up to $1,200 of any property |
Choosing the right exemption system is a critical step in protecting property. A few general strategies include:
These strategies are not one-size-fits-all. Individual results depend on your assets, debts, and financial situation.
The rules surrounding exemptions are detailed and often confusing. Even small mistakes in filing can affect whether you are able to protect your property. That’s why guidance from a qualified bankruptcy attorney can make a meaningful difference in how your case unfolds.
A knowledgeable attorney can:
Working with an experienced Milwaukee bankruptcy attorney means you have someone to guide you through every step, making sure your rights are protected and your property stays secure.
You can generally keep some home equity, one vehicle, personal property up to $12,000, and up to $1,200 in other assets.
Yes. Debtors may choose either federal or state exemptions but must stick with one system entirely.
Not necessarily. It protects up to $75,000 in equity, but circumstances like mortgages or liens affect the outcome.
It allows up to $1,200 to protect any property of your choice not covered by other exemptions.
Yes. In Chapter 7, exemptions decide what can be sold. In Chapter 13, they help shape repayment plans.
Only the equity in your car is protected. If loan value exceeds equity, the exemption may not fully cover it.
Bankruptcy exemptions in Milwaukee are designed to protect essential property and help families maintain stability while resolving debt. Choosing between federal and state exemptions is an important decision that shapes what assets you can keep. Homestead, vehicle, personal property, and wildcard exemptions each play a role in safeguarding daily life during financial recovery.
If you are considering bankruptcy, learning how exemptions apply to your specific situation is the first step toward a more secure future. Debt Advisors Law Offices can help guide you through the process and ensure your property is protected while you work toward a financial fresh start.
Learn about bankruptcy protections, types of bankruptcy, how to get started, what to expect, and who to trust. Filing bankruptcy is the ONLY way to completely eliminate debt. If bankruptcy is right for you, it offers powerful protections that cannot be achieved through alternative solutions such as hardship relief, loans, or debt settlement.
