In order to save your car and house in bankruptcy, you may be able to claim motor vehicle and homestead exemptions under federal or state law. But what about your bank account, your art collection, or other important property? Can the trustee sell them to pay off your creditors? Not necessarily. One option you may have to protect them is the wildcard exemption, which can cover any property whatsoever.

You can claim this exemption under federal law, or in some states, under your local laws. As an example, if you are filling for individual bankruptcy, and you want to claim federal wildcard exemptions, you can exempt:

• $1,225 worth of property,
• And up to $12,250 of an unneeded federal homestead exemption.

When a married couple enters joint bankruptcy, they can claim twice these amounts. It should be noted that not every state will allow you to use federal exemptions. There are some states, however, that have their own distinct wildcard exemptions. How much these are worth, and whether these exemptions are superior to the federal exemptions, are all issues you can discuss with your bankruptcy attorney.

So how does this work?

Say you have two cars, each valued at $5,000. Let's also say that you live in a state where there is only a $3,000 motor vehicle exemption. Without the help of a wildcard exemption, you could only save $3,000 worth of one car. The trustee could sell your cars, giving you the $3,000 you are owed under the vehicle exemption, and use the rest to repay creditors. But let's also say that your state as a $7,000 wildcard exemption. Combine this with your vehicle exemption, and you could put $2,000 of the wildcard toward the one car, and the remainder could completely shield your other car.

To learn more about saving property, fighting off foreclosure, and other vital steps in the bankruptcy process, do not hesitate to discuss your case with a legal expert as soon as possible. You can find the trusted bankruptcy attorney you deserve on our directory today!