Bankruptcy in Wisconsin (2026): Exemptions & Means Test

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 vehicle: up to $4,000 of equity in one vehicle under subd. (3)(g). Any portion of the $12,000 consumer-goods exemption you do not use can be applied to a vehicle, 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: protected by the garnishment limits in Wis. Stat. 812.34, generally the greater of 75% of disposable weekly earnings or a federal-minimum-wage floor.
• 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 who can file Chapter 7. 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, you generally pass and may proceed with 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 April 1, 2026, the Wisconsin median family income is:

Add $11,100 for each additional person beyond four. These figures apply only to cases filed on or after April 1, 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.

Because exemption amounts change, and the choice between the state and federal exemption menus and between Chapter 7 and Chapter 13 depends on your full financial picture, many people consult a licensed Wisconsin bankruptcy attorney before filing.