Every state sets its own homestead exemption -- the amount of equity in your home that the law protects when you file bankruptcy. Here is what you need to know.
A homestead exemption is the amount of equity in your primary residence that state or federal law protects from creditors in bankruptcy. Equity is the fair market value of the home minus all mortgages and liens.
If your equity is within the exemption limit, the Chapter 7 trustee cannot sell your home. In Chapter 13, the exemption determines how much you must pay unsecured creditors through your plan -- while you keep the house. It is the single most important protection for homeowners in bankruptcy.
Exemption amounts vary wildly. Texas and Florida offer unlimited exemptions (subject to acreage limits). Other states like Tennessee protect as little as $5,000. Some states let you pick between state and federal exemptions; others force you to use state law.
| State | Homestead Exemption |
|---|---|
| Texas | Unlimited (acreage limit) |
| Florida | Unlimited (acreage limit) |
| Kansas | Unlimited (acreage limit) |
| Iowa | Unlimited (acreage limit) |
| Oklahoma | Unlimited (acreage limit) |
| Massachusetts | $500,000 |
| Nevada | $605,000 |
| Rhode Island | $500,000 |
| Minnesota | $450,000 |
| California | $300,000 - $600,000 (county median) |
| New York | $179,950 - $179,950 (county tier) |
| Ohio | $161,375 |
| Vermont | $125,000 |
| Arizona | $250,000 |
| Oregon | $40,000 |
| Colorado | $75,000 |
| Washington | $125,000 |
| Georgia | $21,500 |
| Illinois | $15,000 |
| Missouri | $15,000 |
| Tennessee | $5,000 |
| Federal (11 U.S.C. 522(d)(1)) | $27,900 |
Amounts update periodically for inflation adjustments. Check current law for your case. See complete state-by-state exemptions.
Under 11 U.S.C. section 522(p), if you acquired your primary residence within 1,215 days (about 40 months) before filing bankruptcy, your homestead exemption is capped at $189,050 (2022-2025 federal cap) even if your state allows more. This applies in states like Texas and Florida where the exemption is "unlimited." Congress added this rule to stop debtors from moving to high-exemption states just to shield wealth before filing.
If you have owned your home longer than 1,215 days, the full state exemption applies.
A homestead exemption is a state or federal law that protects a set amount of equity in your home from creditors during bankruptcy. If your equity is below the exemption amount, the trustee cannot sell your home to pay creditors. It is the single most important protection for homeowners in bankruptcy.
It depends on your state. Some states require you to use the state exemption system; others let you choose between federal and state exemptions. Federal-option states include Alaska, Arkansas, Connecticut, Hawaii, Kentucky, Massachusetts, Michigan, Minnesota, New Hampshire, New Jersey, New Mexico, New York, Oregon, Pennsylvania, Rhode Island, Texas, Vermont, Washington, Wisconsin and D.C.
You have options. You can pay the trustee the non-exempt portion, use wildcard exemptions if your state offers them, or file Chapter 13 instead of Chapter 7. In Chapter 13 you keep the house regardless of equity in exchange for paying unsecured creditors an equivalent amount through your plan.
Use our free tools to understand your options.
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