Wisconsin
Bankruptcy in Wisconsin (2026): Exemptions & Means Test
Independently fact-checked against primary sources (last audited August 17, 2026). · Reviewed by the RecordingLaw editorial team. · Law checked current as of August 17, 2026. · 6 primary sources cited on this page. How we verify our legal content
Wisconsin is one of the states that lets bankruptcy filers choose: you can use Wisconsin's own exemptions or the federal bankruptcy exemptions, whichever protects more of your property. Bankruptcy itself is federal law, but the exemptions that decide what you keep, and the median income that decides which chapter you can use, are set state by state. The figures below reflect amounts in effect in 2026, and you should confirm the current numbers before relying on them.
This page is general legal information, not legal advice. It is part of our Bankruptcy by State series.
Does Wisconsin use state or federal bankruptcy exemptions?
Wisconsin is not an opt-out state. A debtor who files bankruptcy in Wisconsin may elect to use the Wisconsin exemptions, found mainly in Wis. Stat. 815.20 (homestead) and Wis. Stat. 815.18 (personal property), or the federal bankruptcy exemptions in 11 U.S.C. 522(d). Under 11 U.S.C. 522(b), the federal menu stays available to a debtor whose state has not specifically barred it, and Wisconsin has never enacted such an opt-out. You choose one complete menu and cannot combine items from both lists.
The choice usually turns on home equity and how the wildcard works. Filers with substantial home equity often lean toward whichever homestead is larger for their situation, while renters and filers with little equity sometimes prefer the federal set because of its larger general wildcard. Even a filer who uses the Wisconsin exemptions can separately claim the federal nonbankruptcy exemptions for things like Social Security and tax-qualified retirement accounts. Married couples filing jointly can generally each claim a full set of whichever system they choose.
Wisconsin homestead exemption
Wisconsin's homestead exemption is the headline protection for homeowners. Under Wis. Stat. 815.20, a resident owner's homestead is exempt to the amount of $75,000. The protection extends to the proceeds of a sale, up to the same $75,000, for up to two years while the owner intends to buy another homestead.
The exemption is granted per owner. Wisconsin courts and the statute treat each spouse as able to claim a homestead exemption of not more than $75,000, so a married couple who jointly own and occupy the residence can claim up to $150,000 combined. The exemption covers a home, condominium, mobile or manufactured home, or cooperative, together with the land it sits on, subject to the statute's terms.
Homestead protection covers equity, not the full value of the home. A residence worth more than the mortgage plus the available exemption can still leave non-exempt equity that a Chapter 7 trustee may reach. Because the figure is fixed by statute rather than indexed, confirm the current amount in Wis. Stat. 815.20 before filing.
Vehicle, wildcard, and personal-property exemptions
Beyond the home, Wisconsin protects a range of everyday property under Wis. Stat. 815.18:
- Motor vehicles: up to $4,000 in aggregate value under subd. (3)(g). The statute exempts "motor vehicles not to exceed $4,000 in aggregate value," so the cap is a single total across every vehicle you own rather than $4,000 for each one. Any portion of the $12,000 consumer-goods exemption you do not use can be applied to motor vehicles, which effectively raises the vehicle protection.
- Consumer goods, household furnishings, clothing, keepsakes, jewelry, appliances, firearms, and similar personal property: up to $12,000 in aggregate under subd. (3)(d).
- Tools of the trade and business equipment: up to $15,000 in aggregate under subd. (3)(b).
- Wages and earnings: 80% of disposable earnings are exempt from wage garnishment under Wis. Stat. 812.34, and earnings are fully exempt if the debtor's household income is below the poverty line or the debtor receives need-based public assistance. Separately, Wis. Stat. 815.18(3)(h) exempts 75% of the debtor's net income for each one-week pay period from other executions. That benefit is limited to the extent reasonably necessary for the support of the debtor and the debtor's dependents, but never drops below 30 times the greater of the state or federal minimum wage.
- Retirement accounts: tax-qualified plans are protected under Wisconsin law and under federal law regardless of which menu you choose.
Wisconsin does not provide a separate general dollar wildcard the way the federal exemptions do. Filers who need flexible "any property" protection sometimes choose the federal menu for that reason. Confirm the current figures in the statute before filing, because the legislature can amend them.
The Chapter 7 means test in Wisconsin
The means test screens Chapter 7 filings for a presumption of abuse. The first step compares your household's current monthly income, annualized, to the median family income for a Wisconsin household of the same size. If your income is at or below the Wisconsin median, there is no presumption of abuse and you do not need to complete Form 122A-2, but that alone does not make you eligible for Chapter 7. If it is above the median, you complete the longer calculation that subtracts allowed expenses to see whether you have disposable income that should fund a Chapter 13 plan instead.
The U.S. Trustee Program publishes the median figures and updates them periodically. For cases filed on or after July 15, 2026, the Wisconsin median family income is:
| Household size | Wisconsin median annual income |
|---|---|
| 1 | $71,168 |
| 2 | $90,252 |
| 3 | $108,516 |
| 4 | $133,384 |
Add $11,100 for each additional person beyond four. These figures apply to cases filed on or after July 15, 2026; the same amounts applied to cases filed between April 1 and July 14, 2026. The U.S. Trustee Program revises the median income data roughly twice a year, so confirm the current numbers for your filing date.
Chapter 7 vs. Chapter 13 in Wisconsin
Chapter 7 is a liquidation. A trustee can sell non-exempt property to pay creditors, but because Wisconsin's exemptions protect most household property and much home equity, many Chapter 7 cases are "no-asset" cases where nothing is sold. Most remaining unsecured debt, such as credit cards and medical bills, is discharged in a few months.
Chapter 13 is a reorganization for filers with regular income. You keep your property and repay some or all of what you owe through a three-to-five-year plan. Chapter 13 is often chosen by homeowners who are behind on a mortgage, because the plan can spread out the missed payments and stop a foreclosure while you catch up.
In both chapters, filing triggers the automatic stay under 11 U.S.C. 362. The stay immediately halts most collection activity, including foreclosure sales, wage garnishment, repossession, and collection calls, while the case proceeds.
Where you file bankruptcy in Wisconsin
Wisconsin is divided into two federal bankruptcy districts. The U.S. Bankruptcy Court for the Eastern District of Wisconsin sits in Milwaukee and serves the eastern counties, while the U.S. Bankruptcy Court for the Western District of Wisconsin sits in Madison with a staffed office in Eau Claire and serves the western counties. You file in the district that covers the county where you live. Before filing, federal law requires you to complete an approved credit-counseling course, and you must complete a debtor-education course before your debts are discharged.
What bankruptcy can and cannot do
Bankruptcy discharges most unsecured debts, but several categories generally survive: most student loans (absent a separate showing of undue hardship), recent income taxes, child support and alimony, and debts from fraud or willful injury. Secured debts like a car loan or mortgage continue if you want to keep the collateral and keep paying.
The exemption menu and the chapter both turn on your full financial picture, so get a free bankruptcy evaluation from a Wisconsin lawyer on your exemption menu and chapter before you file (attorney advertising).
Frequently Asked Questions
Does Wisconsin use state or federal bankruptcy exemptions?
Wisconsin lets you choose. It has not opted out of the federal exemptions, so a filer domiciled in Wisconsin may use either the state exemptions in Wis. Stat. ch. 815 or the federal bankruptcy exemptions in 11 U.S.C. 522(d). You pick one full menu, not a mix of both.
What is the homestead exemption in Wisconsin?
Wisconsin's homestead exemption protects up to $75,000 of equity in a residence under Wis. Stat. 815.20. It is granted per owner, so a married couple who jointly own and occupy the home can each claim it, for up to $150,000 combined. The amount is fixed by statute, so confirm the current figure before filing.
What is the Wisconsin median income for the means test?
For cases filed on or after July 15, 2026, the Wisconsin median family income is $71,168 for 1 person, $90,252 for 2, $108,516 for 3, and $133,384 for 4, adding $11,100 for each additional person. The U.S. Trustee Program updates these figures periodically.
Will I lose my house or car if I file bankruptcy in Wisconsin?
Often no. Wisconsin's homestead exemption protects up to $75,000 of home equity per owner ($150,000 for a couple), and the motor-vehicle exemption protects up to $4,000 of vehicle equity in total across all your vehicles (more if you add unused consumer-goods exemption). Most filers keep their home and car as long as they stay current on the related loans, though equity above the exemption can be at risk in Chapter 7.
How much equity can I protect in my car in Wisconsin?
Up to $4,000 in aggregate value is exempt under Wis. Stat. 815.18(3)(g). That is a single total across all of your motor vehicles, not $4,000 for each one. Any unused portion of the $12,000 consumer-goods exemption can be added to it, which effectively increases the amount of vehicle equity you can protect.
Where do I file for bankruptcy in Wisconsin?
Wisconsin has two federal bankruptcy districts. The Eastern District sits in Milwaukee and the Western District sits in Madison (with an office in Eau Claire). You file in the district covering the county where you live, and you must complete approved credit counseling before filing.
What debts cannot be discharged in a Wisconsin bankruptcy?
Most student loans (absent a showing of undue hardship), recent income taxes, child support, alimony, and debts arising from fraud generally are not discharged. Most credit-card and medical debt usually is.
Does filing bankruptcy stop a foreclosure in Wisconsin?
Filing triggers the automatic stay under 11 U.S.C. 362, which immediately halts most collection activity, including foreclosure and wage garnishment. Chapter 13 can also let a homeowner cure missed mortgage payments over time.
Updates
Clarified that income at or below the state median means the presumption of abuse does not arise under the Chapter 7 means test, not that a filer qualifies for Chapter 7.
Corrected the Wisconsin motor-vehicle exemption to a $4,000 aggregate cap across all vehicles rather than per vehicle, added the reasonably-necessary limit and the "greater of" state or federal minimum wage floor to the net-income exemption, and updated the Chapter 7 means-test figures to the U.S. Trustee table for cases filed on or after July 15, 2026.
Independently fact-checked against the cited primary sources; governing law re-checked for recent changes
Governing law re-checked for recent changes
Corrected the Wisconsin wage-protection figures: the 75%-of-earnings / 30x-minimum-wage rule belongs to Wis. Stat. 815.18(3)(h), not 812.34, which actually exempts 80% of disposable earnings from wage garnishment (fully exempt below the poverty line or on need-based assistance).
Governing law re-checked for recent changes
Reviewed and approved by an editor
The Law Behind This Article
This article rests on the statutory provisions below, held in our own legal record and retrieved from the official source. Tap a section to read the operative text.
Wisconsin Statutes, Chapter 815: Executions
§ 815.18Property exempt from execution.In forcecited in 3 of our articles
(1) Statutory construction. This section shall be construed to secure its full benefit to debtors and to advance the humane purpose of preserving to debtors and their dependents the means of obtaining a livelihood, the enjoyment of property necessary to sustain life and the opportunity to avoid becoming public charges. (2) Definitions. In this section: (a) “Aggregate value” means the sum total of the debtor’s equity in the property claimed exempt. (am) “Annuity” means a series of payments payable during the life of the annuitant or during a specific period. (b) “Business” means any lawful activity, including a farm operation, conducted primarily for the purchase, sale, lease or rental of property, for the manufacturing, processing or marketing of property, or for the sale of services. (bc) “Closely held business” means a corporation whose stocks are held by not more than 25 individuals, a partnership of not more than 25 partners who are individuals, or a limited liability company of not more than 25 members who are individuals. (c) “Debtor” means an individual.
Official text (excerpt) · last checked 2026-07-29 · Read the full text in our law library · Verify at docs.legis.wisconsin.gov
Cited in 67 court opinions in our collectionLatest citing opinion in our collection: 2025
Opinions citing this section in our collection:
- Rumage v. Gullberg (Wisconsin Supreme Court 2000, 235 Wis. 2d 279)“…is surplus equity and the homestead is "partially exempt." Wis. Stat. § 815.18 (9). 9 We agree with the c…”
- Paulman v. Pemberton (Court of Appeals of Wisconsin 2001, 246 Wis. 2d 909)“…gave Carole a "consensual lien" over his home pursuant to Wis. Stat. §815.18 (12) 4 when he stipulated…”
- Crown Castle USA, Inc. v. Orion Construction Group, LLC (Court of Appeals of Wisconsin 2010, 331 Wis. 2d 74)“…action under Wis. Stat. ch. 242 to set aside the transfer. Wis. Stat. § 815.18 (10); see also Wis. Stat. §§ 242.04-…”
Identified automatically from the court opinions citing this section — not a ranking of which case controls.
Also relied on in: Wisconsin Data Breach Notification Laws: Reporting Rules & Timelines (2026), Wisconsin Debt Collection Laws: Expired Debt Dies and Repossession Needs Permission
§ 815.20Homestead exemption definition.In forcecited in 2 of our articles
(1) An exempt homestead as defined in s. 990.01 (14) selected by a resident owner and occupied by him or her shall be exempt from execution, from the lien of every judgment, and from liability for the debts of the owner to the amount of $75,000, except mortgages, laborers’, mechanics’, and purchase money liens and taxes and except as otherwise provided. The exemption shall not be impaired by temporary removal with the intention to reoccupy the premises as a homestead nor by the sale of the homestead, but shall extend to the proceeds derived from the sale to an amount not exceeding $75,000, while held, with the intention to procure another homestead with the proceeds, for 2 years. The exemption extends to land owned by husband and wife jointly or in common or as marital property, and each spouse may claim a homestead exemption of not more than $75,000. The exemption extends to the interest therein of tenants in common, having a homestead thereon with the consent of the cotenants, and to any estate less than a fee.
Official text (excerpt) · last checked 2026-07-29 · Read the full text in our law library · Verify at docs.legis.wisconsin.gov
Cited in 48 court opinions in our collectionLatest citing opinion in our collection: 2026
Opinions citing this section in our collection:
- Rumage v. Gullberg (Wisconsin Supreme Court 2000, 235 Wis. 2d 279)“…as his homestead and claimed the property as exempt under Wis. Stat. §§ 815.20 (1) and 990.01(14) (1989-90), the homes…”
- Paulman v. Pemberton (Court of Appeals of Wisconsin 2001, 246 Wis. 2d 909)“…not protected from a *911 forced sale under Wis. Stat. § 815.20 (1995-96), 1 the statute…”
- Equitable Bank, S.S.B. v. Chabron (Court of Appeals of Wisconsin 2000, 238 Wis. 2d 708)“…997-98), 1 and (2) the homestead exemption in Wis. Stat. § 815.20 (1) should be applied to the surplus, e…”
Identified automatically from the court opinions citing this section — not a ranking of which case controls.
Also relied on in: Wisconsin Homestead Exemption: Credits, Deadlines and How to Apply
Wisconsin Statutes, Chapter 812: Garnishment
§ 812.34Exemption.In forcecited in 2 of our articles
(1) The exemptions provided in this section do not apply if the judgment debt meets one of the following conditions: (a) Was ordered by a court under s. 128.21 or by any court of the United States under 11 USC 1301 to 1330. (b) Is for the support of any person. (c) Is for unpaid taxes. (2) (a) Unless the court grants relief under s. 812.38 (2) or par. (b) or (c) applies, 80 percent of the debtor’s disposable earnings are exempt from garnishment under this subchapter. (b) The debtor’s earnings are totally exempt from garnishment under this subchapter if: 1. The debtor’s household income is below the poverty line. 2. The debtor receives need-based public assistance, has received such assistance within 6 months prior to service of the earnings garnishment forms upon the garnishee or has been determined eligible to receive need-based assistance although actual receipt of benefits has not commenced.
Official text (excerpt) · last checked 2026-07-29 · Read the full text in our law library · Verify at docs.legis.wisconsin.gov
Cited in 4 court opinions in our collectionLatest citing opinion in our collection: 2019
Opinions citing this section in our collection:
- Unifund CCR Partners v. Olofson (Court of Appeals of Wisconsin 2018, 384 Wis. 2d 272)“…shment, and that as such the exemptions to garnishment of Wis. Stat. § 812.34 do not apply in this case. By not fil…”
- Chase Lumber & Fuel Co. v. Koch (In Re Koch) (United States Bankruptcy Court, W.D. Wisconsin 1996, 197 B.R. 654)“…rtcy.W.D.Wis.1981). The debtor may claim an exemption under Wis.Stat. § 812.34(2)(b) or assert any defense to the garn…”
- Whitehead v. Discover Bank (District Court, E.D. Wisconsin 2015, 118 F. Supp. 3d 1111)“…be partially or completely exempt from garnishment. See Wis. Stat. § 812.34 . In his answer, WTiitehead did not cla…”
Identified automatically from the court opinions citing this section — not a ranking of which case controls.
United States Code Title 11
§ 362Automatic stayIn forcecited in 54 of our articles
Except as provided in subsection (b) of this section, a petition filed under section 301, 302, or 303 of this title, or an application filed under section 5(a)(3) of the Securities Investor Protection Act of 1970, operates as a stay, applicable to all entities, of— the commencement or continuation, including the issuance or employment of process, of a judicial, administrative, or other action or proceeding against the debtor that was or could have been commenced before the commencement of the case under this title, or to recover a claim against the debtor that arose before the commencement of the case under this title; the enforcement, against the debtor or against property of the estate, of a judgment obtained before the commencement of the case under this title; any act to obtain possession of property of the estate or of property from the estate or to exercise control over property of the estate; any act to create, perfect, or enforce any lien against property of the estate; any act to create, perfect, or enforce against property of the debtor any lien to the extent that such lien secures a claim that arose before the commencement of the case under this title; any act to…
Official text (excerpt) · last checked 2026-09-16 · Read the full text in our law library · Verify at uscode.house.gov
Cited in 19,606 court opinions in our collectionLatest citing opinion in our collection: 2026
In the courts (editorial summary, independently checked):United Sav. Assn. of Tex. v. Timbers of Inwood Forest Associates, Ltd. (1988) held that an undersecured creditor gets no interest as adequate protection under 362(d)(1) for delay caused by the stay. NLRB v. Bildisco & Bildisco (1984) applied 362(a) in requiring claims be pursued through bankruptcy administration, not suit.
Opinions citing this section in our collection:
- Clinton v. Jones (Supreme Court of the United States 1997, 520 U.S. 681)“…ublic interests. Brief for Petitioner 34-36. See, e. g., 11 U. S. C. § 362 (litigation against debtor stayed upon…”
- United Sav. Assn. of Tex. v. Timbers of Inwood Forest Associates, Ltd. (Supreme Court of the United States 1988, 484 U.S. 365)✓An undersecured lender on a Houston apartment project sought monthly payments as the price of continuing the § 362(a) automatic stay; the Court held that 'adequate protection' under § 362(d)(1) does not entitle it to interest for the delay in foreclosing on its collateral.
- Pennzoil Co. v. Texaco Inc. (Supreme Court of the United States 1987, 481 U.S. 1)“…if it were forced to file for bankruptcy under Chapter 11. 11 U. S. C. §362 . Texaco, or its successor in interest,…”
Identified automatically from the court opinions citing this section — not a ranking of which case controls.
Also relied on in: Bankruptcy in Alabama (2026): Exemptions & Means Test, Bankruptcy in Alaska (2026): Exemptions & Means Test, Bankruptcy in Arizona (2026): Exemptions & Means Test
§ 522ExemptionsIn forcecited in 54 of our articles
In this section— “dependent” includes spouse, whether or not actually dependent; and “value” means fair market value as of the date of the filing of the petition or, with respect to property that becomes property of the estate after such date, as of the date such property becomes property of the estate. Notwithstanding section 541 of this title, an individual debtor may exempt from property of the estate the property listed in either paragraph (2) or, in the alternative, paragraph (3) of this subsection. In joint cases filed under section 302 of this title and individual cases filed under section 301 or 303 of this title by or against debtors who are husband and wife, and whose estates are ordered to be jointly administered under Rule 1015(b) of the Federal Rules of Bankruptcy Procedure, one debtor may not elect to exempt property listed in paragraph (2) and the other debtor elect to exempt property listed in paragraph (3) of this subsection. If the parties cannot agree on the alternative to be elected, they shall be deemed to elect paragraph (2), where such election is permitted under the law of the jurisdiction where the case is filed.
Official text (excerpt) · last checked 2026-09-16 · Read the full text in our law library · Verify at uscode.house.gov
Cited in 7,574 court opinions in our collectionLatest citing opinion in our collection: 2026
In the courts (editorial summary, independently checked):Taylor v. Freeland & Kronz (1992) held that a trustee who does not object within the 30-day period cannot later challenge an exemption claimed under 522(l), even one with no statutory basis. Owen v. Owen (1991) held that 522(f) lien avoidance is not defeated by a state exemption written to exclude lien-encumbered property.
Opinions citing this section in our collection:
- Taylor v. Freeland & Kronz (Supreme Court of the United States 1992, 503 U.S. 638)✓A Chapter 7 debtor listed the entire proceeds of her TWA discrimination suit as exempt and the trustee let the 30-day objection window lapse; the Court held that under § 522(l) the property is exempt once no one objects, even absent a colorable statutory basis.
- Patterson v. Shumate (Supreme Court of the United States 1992, 504 U.S. 753)✓A debtor's $250,000 ERISA pension interest was excluded from his estate under § 541(c)(2); answering a surplusage argument, the Court read § 522(d)(10)(E) as exempting a broader set of plans, and expressly declined to decide whether § 522(b)(2)(A) also applied.
- Owen v. Owen (Supreme Court of the United States 1991, 500 U.S. 305)✓An ex-wife's judgment lien attached to a Florida condo before state law made it a homestead; the Court held § 522(f) measures impairment against the exemption the debtor would have had but for the lien, so Florida's carve-out for prior liens did not defeat avoidance.
Identified automatically from the court opinions citing this section — not a ranking of which case controls.
Also relied on in: Bankruptcy Laws by State (2026): Exemptions & Means Test, Bankruptcy in Arkansas (2026): Exemptions & Means Test, Bankruptcy in California (2026): Exemptions & Means Test
Sources and References
- Wis. Stat. 815.20, Wisconsin homestead exemption ($75,000 per owner; sale-proceeds protection)(docs.legis.wisconsin.gov).gov
- Wis. Stat. 815.18, Wisconsin property exempt from execution (motor vehicle (3)(g) $4,000; consumer goods (3)(d) $12,000; tools of trade (3)(b))(docs.legis.wisconsin.gov).gov
- Wis. Stat. 812.34, Wisconsin wage-garnishment exemption (80% of disposable earnings exempt; fully exempt below the poverty line or on need-based assistance)(docs.legis.wisconsin.gov).gov
- U.S. Trustee Program, Census Bureau Median Family Income by family size, cases filed on or after April 1, 2026(justice.gov).gov
- 11 U.S.C. 522, exemptions, including the state opt-out authority in 522(b) and the federal exemption schedule in 522(d)(law.cornell.edu)
- U.S. Bankruptcy Court for the Eastern District of Wisconsin (Milwaukee)(wieb.uscourts.gov).gov
- U.S. Bankruptcy Court for the Western District of Wisconsin (Madison, Eau Claire)(wiwb.uscourts.gov).gov
- U.S. Trustee Program, Census Bureau Median Family Income by family size, cases filed on or after July 15, 2026(justice.gov)
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