Are you looking to protect a property that is quite important and dear to you? Now that is easily possible with a wildcard exemption. Now, you no longer need to worry about losing important and valuable items which hold a very high value in your life, while filing for bankruptcy. As per the new norm, if your state has a “wildcard exemption” you can protect and safeguard invaluable items from being given away or foreclosure.
The property that you want to protect or safeguard completely differs from state to state. Hence, depending on your residential location, you will be able to use the “wildcard exemption” as per the statutes and law stated of that particular state. The common items that you can safeguard generally are – furniture, clothing, crockery, and bedding. Also depending upon the state statutes, you might be able to keep either of these as well-
- Child and/or spousal support
- Equity in a residential home
- ERISA qualified retirement account.
However, exemptions for luxury items like boats, vacation homes, snowmobiles and the like is not permissible. Nonetheless, some states provide this benefit to its residents where they can safeguard any property or items (even under the category of unnecessary or luxury property) under a certain value/dollar as stated by the state.
For example, the state has permitted you to use the “wildcard exemption” of value $7000. You can use this to safeguard/exempt any items within the stipulated value of $7000. This can include luxury items as well but must be under the stipulated amount. For instance – your golf club, sauna, a piece of jewelry- all summed up under the authorized value of $700 and must not exceed the value at any cost.