The wild card exemptions in chapter 7 bankruptcy can be applied to three types of assets and properties that include non-exempt property, partially exempt property, and cash. For example, if your state allows you to exempt up to $1500 under this category, you can either choose to keep that much value of cash or get that much value assets exempted that were otherwise non-exempt. You also have a third option where you can use the wild card to protect other partially exempted properties from the clutches of liquidation. For example, if the current value of your car is $5000, the exempted value of the car is $3500, and you have only $1500 of car loan outstanding in your name, you can use these exemptions to protect your car. If you do not do so, your car will be sold off and you will be paid $3500 in cash.
Using Federal Wildcard Exemption As Wildcard
The federal homestead exemption is $20200 per individual filing. You can use the unused portion of homestead exemption to cover other personal properties of that much value. This way, even a certain portion of homestead exemption can also be used as wild card exemptions in certain cases up to the value of $10,825.
As per federal exemptions, a bankrupt individual is allowed to keep many assets and properties that include vehicles, jewellery, clothes, personal items up to $9300, pensions and IRAs, unemployment insurance, alimony and child support, and homes with equity less than $ 17, 425. Besides these normal exemptions, the debtor is also allowed to exempt any other asset that is otherwise non-exempt up to the dollar amount of $1,150 of any property.
States Where Such Exemptions Can Be Used
West Virginia – up to $800 from unused portion of homestead exemption can be used as wild card exemptions
Washington – $2,000 of any personal property, but in terms of stocks, bonds, bank deposits and cash, not more than $200 can be exempted
Virginia – Up to $10,000 of unused portion of personal property or homestead exemption
Vermont – Up to $7,000 of unused exemptions for crops, clothing, appliances, household furniture, jewelry, tools of trade, and motor vehicle
South Dakota – Up to $4,000 of any personal property (if claimed by non-head of family); up to $6,000 (if claimed by head of family)
South Carolina – Up to $5,350 of unused portion for tool of trade, jewelry, personal property, motor vehicle, burial and homestead exemptions
Rhode Island – up to $5,000
Pennsylvania – up to $300 of any property, including cash
Oregon – up to $400 of any personal property ($800 in case a married couple files jointly)
Ohio – up to $1,175
North Dakota – up to $7,500 of any property in lieu of homestead; if crops or grain exemptions are not used, up to $3,750 of any personal property (if claimed by non-head of household) and up to $7,500 of any personal property (if claimed by head of household)
North Carolina – up to $500 of any personal property; up to $5,000 from unused portion of burial or homestead exemptions
New Mexico – up to $500 as wild card exemptions
New Hampshire – up to $1,000
Nevada – up to $1,000
Nebraska – up to $2,500 of any personal property (except wages) from unused portion of homestead exemptions
Missouri – Up to $600 (if claimed by non-head of the family); $1,250 (if claimed by head of family); additional $350 per child may also be claimed by the head of family
Mississippi – up to $50,000 of any property, including cash and bank deposit, but only individuals who is 70 years of age or older can qualify for it.
Maryland – up to $6,000 of any property, including cash; An additional $5,000 in any real or personal property; however, the exemptions must be claimed within thirty days of attachment or levy
Maine – up to $400 in any property; up to $6,000 from unused portion of homestead exemptions
Kentucky – up to $1,000 as wild card exemptions
Iowa – up to $1,000 of cash or any personal property
Indiana – up to $8,000 of any tangible or real estate personal property
Illinois – up to $4,000 of any personal property, excluding wages
Idaho – up to $800 of any tangible personal property
Georgia – up to $600 of any property; Up to $5,000 of unused portion of homestead exemptions
District of Columbia – Up to $850 in any property; up to $8,075 of unused portions from homestead exemptions
Connecticut – up to $1000 of any personal property
Arkansas – up to $200 (for singles and non-head of family); up to $500 of any personal property (head of family or couples)
Alabama – up to $3,000 of any personal property, excluding wages; up to $6000 for couples if filed jointly
Delaware – head of family can qualify for wild card exemptions up to $500 of any personal property, excluding tools of trade