Bankruptcy in New Hampshire (2026): Exemptions & Means Test

Bankruptcy is a federal process, but the property you can keep and the income limits that shape Chapter 7 eligibility turn on state law. New Hampshire is one of a minority of states that lets you choose between its own exemptions and the federal bankruptcy exemptions, and its homestead protection was sharply increased effective January 1, 2026.

This guide is part of our Bankruptcy by State series. It is general legal information, not legal advice, and the dollar figures below change periodically, so confirm current amounts before you rely on them.

Does New Hampshire use state or federal bankruptcy exemptions?

New Hampshire is one of the states that did not opt out of the federal exemption scheme. Under 11 U.S.C. 522(b), each state may force its residents to use state exemptions, but New Hampshire instead lets a filer choose. You may claim either the New Hampshire exemptions, the most important being the homestead right in RSA 480:1 and the personal-property list in RSA 511:2, or the federal exemptions in 11 U.S.C. 522(d). You must choose one full set; you cannot combine the most generous parts of each.

Because of this choice, comparing the two systems is the central planning step for a New Hampshire filer. After the 2026 increase, the New Hampshire homestead is far larger than the federal homestead, while the federal set offers a sizable wildcard that can protect cash, accounts, or other property the state list does not reach. A spouse who co-owns property and files jointly may, in many cases, double the federal amounts. To use New Hampshire's exemptions, the residency rules in 11 U.S.C. 522(b)(3) generally require domicile in New Hampshire for the 730 days before filing; otherwise an earlier state's exemptions may apply.

New Hampshire homestead exemption

New Hampshire's homestead right under RSA 480:1 protects equity in a person's home from most creditors. Effective January 1, 2026, the legislature raised the amount to $400,000 per person, with a combined cap of $550,000 when the homestead is held or claimed jointly. This was a major increase from the prior $120,000 figure under HB 617, enacted in 2025, so many existing summaries are out of date. The $400,000 amount is current as of mid-2026, and you should confirm the latest figure before relying on it.

The revised statute also adds a narrow but important exception: where the debt arises from unpaid medical bills, or from other obligations directly resulting from a terminal or catastrophic injury or illness, the full market value of the property may be claimed as a homestead, without the dollar cap. The 2026 amendments also include conditions such as a primary-residence requirement, so the precise contours are worth reviewing for a specific situation.

Motor vehicle, wildcard, and personal property

Beyond the homestead, New Hampshire protects several categories under RSA 511:2:

• Motor vehicle: up to $10,000 of equity in one vehicle.
• Wildcard: $1,000 in any property, plus up to $7,000 of any unused amount of certain enumerated exemptions, which can be stacked on other property.
• Household furniture and provisions: necessary furniture up to $3,500, plus food, fuel, and provisions for the household.
• Tools of trade: tools of the debtor's occupation up to $5,000.
• Wearing apparel, beds and bedding, a cooking stove, books, and certain domestic animals.

Wages are protected through New Hampshire's limits on attachment of earnings, and most public benefits, retirement accounts, and health aids are also shielded. Because the homestead is now very large, many New Hampshire homeowners protect their residence fully under the state set, then weigh the federal wildcard against the state personal-property list for everything else.

The Chapter 7 means test in New Hampshire

The means test screens who may file Chapter 7. The first step compares your household's average monthly income over the six months before filing, annualized, to the New Hampshire median family income for your household size as published by the U.S. Trustee Program. If you are at or below the median, you generally pass. If you are above it, a second calculation of disposable income decides whether you can still file Chapter 7 or are steered toward Chapter 13.

For cases filed on or after April 1, 2026, the New Hampshire median family income figures are:

Add $11,100 for each additional person beyond four. These figures apply only to cases filed on or after April 1, 2026, and the U.S. Trustee Program revises them about twice a year, so confirm the figures for your filing date.

Chapter 7 vs. Chapter 13 and the automatic stay

Chapter 7 is liquidation. A trustee may sell non-exempt property to pay creditors, and most remaining unsecured debt is discharged, usually within about four to six months. It suits filers with limited non-exempt assets and primarily unsecured debt.

Chapter 13 is reorganization. You keep your property and repay some or all of what you owe through a court-approved plan lasting three to five years, which can help homeowners cure a mortgage arrearage or filers whose income is too high for Chapter 7.

Filing either chapter triggers the automatic stay under 11 U.S.C. 362, which immediately halts most collection efforts, including foreclosure sales, wage garnishment, repossession, and collection calls, while the case proceeds.

Where you file in New Hampshire

New Hampshire is a single federal judicial district, so all cases go to the U.S. Bankruptcy Court for the District of New Hampshire. The court sits at the Warren B. Rudman U.S. Courthouse in Concord. Filers must complete a credit-counseling course from an approved provider before filing and a debtor-education course before discharge.

What bankruptcy can and cannot do

Most unsecured debts, such as credit cards, medical bills, and personal loans, are dischargeable. Several categories generally are not, including most student loans (absent a separate showing of undue hardship), recent income taxes, domestic-support obligations like child support and alimony, and debts arising from fraud. Secured debts like a mortgage or car loan continue if you keep the collateral and keep paying. Because the choice between the New Hampshire and federal exemption sets can change which assets you keep, and because the means-test figures shift, many filers consult a licensed New Hampshire bankruptcy attorney before deciding.