What is 11 U.S.C. Section 522?

Section 522 governs the property a debtor may exempt from the bankruptcy estate. Exempt property is withdrawn from administration by the trustee and is not available to satisfy pre-petition claims. The section sets the framework for federal and state exemption regimes and the procedural rules for claiming exemptions.

Can a debtor use federal or state exemptions?

Section 522(b) allows a debtor to choose between the federal exemptions listed in Section 522(d) and the exemptions available under applicable state and nonbankruptcy federal law, unless the debtor's state has opted out of the federal exemption scheme under Section 522(b)(2). Many states have opted out, restricting debtors in those states to state exemptions.

How is the applicable state's exemption law determined?

Section 522(b)(3)(A) applies a domicile rule: the debtor's exemptions are governed by the law of the state in which the debtor was domiciled for the 730 days immediately preceding the petition. If domicile shifted within that period, a look-back to the 180-day period before the 730 days is used.

What is the homestead exemption cap under Section 522(p)?

Section 522(p) imposes a federal cap on the homestead exemption for interests acquired within 1,215 days before filing. The cap is adjusted periodically for inflation and limits the amount of a state homestead exemption that may be claimed in property acquired during the look-back period.

11 USC 522 - Exemptions in Bankruptcy [2026]

Q: How are improperly claimed exemptions challenged?

Federal Rule of Bankruptcy Procedure 4003(b) sets the deadline for parties in interest to object to exemptions, generally 30 days after the conclusion of the meeting of creditors or any amendment to the exemption schedule. An unobjected-to exemption is generally treated as allowed under Section 522(l).

Exemptions under 11 U.S.C. 522 are the rules that let you keep property in bankruptcy: home equity, a car, household goods, tools of your trade, and retirement accounts up to set dollar limits. You use either the federal exemption set or your state's, depending on where you have lived under the domicile rule, and many states require their own. Property covered by an exemption is protected from both the trustee and your creditors.

What Is Section 522?

Section 522 governs what property an individual debtor may exempt from the bankruptcy estate. Exempt property is removed from the trustee's reach and remains with the debtor after the case, even though it is initially property of the estate under Section 541. Exemptions are central to the fresh-start policy of consumer bankruptcy, ensuring that debtors retain a minimum baseline of property necessary for ongoing life.

Official citation: 11 U.S.C. § 522

Federal Versus State Exemptions: Section 522(b)

Section 522(b)(1) gives individual debtors the option to elect either the federal exemptions listed in Section 522(d) or the exemptions provided by applicable state law plus federal nonbankruptcy exemptions, "unless the State law that is applicable to the debtor under paragraph (3)(A) specifically does not so authorize." This "opt-out" provision allows states to require their residents to use state exemptions exclusively. Approximately two-thirds of states have opted out, leaving residents with no choice but state exemptions.

Section 522(b)(3) defines applicable state law by reference to the debtor's domicile during the 730 days preceding the petition. Where the debtor has moved between states during the look-back period, the applicable state is determined by where the debtor was domiciled for the greater portion of the 180-day period preceding the 730-day look-back. The complex domicile rules are an anti-forum-shopping measure adopted by BAPCPA in 2005.

Federal Exemptions: Section 522(d)

The federal exemptions of Section 522(d), available in non-opt-out states, include (with dollar amounts subject to triennial inflation adjustment under Section 104):

522(d)(1): Homestead exemption in residence used as a residence by the debtor or a dependent.
522(d)(2): Motor vehicle exemption.
522(d)(3): Household furnishings, clothing, appliances, books, animals, crops, or musical instruments, up to per-item and aggregate caps.
522(d)(4): Jewelry held primarily for personal use.
522(d)(5): The "wildcard" exemption, allowing the debtor to exempt additional value in any property, including unused portions of the homestead exemption.
522(d)(6): Tools of the trade.
522(d)(7): Life-insurance contracts (other than credit life).
522(d)(8): Life-insurance dividends and interest, up to a cap.
522(d)(10): Various social-security, public-assistance, alimony, retirement, and similar benefits to the extent reasonably necessary.
522(d)(11): Right to receive certain personal-injury, wrongful-death, lost-future-earnings, and other awards.
522(d)(12): Retirement funds in tax-exempt accounts (added in 2005).

Homestead Cap: Section 522(p) and 522(q)

BAPCPA imposed federal limits on state-law homestead exemptions to combat forum shopping. Section 522(p) caps the homestead exemption at a specified amount (subject to inflation adjustment) for interests acquired by the debtor within 1,215 days before the petition. Section 522(q) imposes an additional cap on debtors with certain pre-petition misconduct (securities-law violations, intentional torts causing serious physical injury or death within 5 years preceding the petition, racketeering convictions).

These provisions limit, but do not eliminate, the ability of debtors to use favorable state homestead exemptions (such as Florida or Texas). The 1,215-day look-back is roughly 40 months, meaning a debtor can fully claim a generous state homestead exemption only if the property was acquired more than three years before filing.

Lien Avoidance: Section 522(f)

Section 522(f) allows the debtor to avoid certain liens that impair an exemption. The two categories of avoidable liens are:

522(f)(1)(A): Judicial liens (other than judicial liens securing a domestic-support obligation).
522(f)(1)(B): Nonpossessory, non-purchase-money security interests in certain household goods, tools of the trade, and similar property.

The arithmetic test for impairment is set out in Section 522(f)(2)(A): the lien impairs an exemption to the extent the sum of the lien, all other liens on the property, and the amount of the exemption that could be claimed if there were no liens exceeds the value of the debtor's interest in the property absent any liens. Section 522(f) is one of the few avoidance powers vested in the debtor (rather than the trustee), reflecting its purpose of protecting the fresh start.

Procedure for Claiming Exemptions

The debtor claims exemptions on Schedule C, filed with the petition or shortly thereafter under Federal Rule of Bankruptcy Procedure 1007. Parties in interest may object to claimed exemptions under Rule 4003(b), generally within 30 days after the conclusion of the meeting of creditors under Section 341. Failure to object timely results in the exemption being allowed as claimed, even if invalid, under Taylor v. Freeland & Kronz, 503 U.S. 638 (1992).

Related Bankruptcy Code Sections

This section operates in concert with several other provisions of the Bankruptcy Code:

Section 541 - Property of the estate from which exemptions are drawn
Section 521 - Debtor duty to file a list of exempt property
Section 727 - Discharge in Chapter 7 protecting exempt-property recovery
Section 524 - Discharge injunction protecting exempt property post-discharge

Understanding how these sections interact is important for debtors, creditors, trustees, and counsel navigating a bankruptcy case.

Topical deep-dive on Section 522

11 USC 522 - exemptions framework (deep dive) — federal versus state election, the 730-day domicile rule, lien avoidance under 522(f), homestead reduction under 522(o) and 522(p), and Law v. Siegel.

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