Bankruptcy exemptions are rules that exempt certain types and amounts of property from being sold or used to satisfy the claims of debtors in your bankruptcy case. Each state has a set of bankruptcy exemptions that you can use to protect your property while going through bankruptcy.

Federal law also provides a set of bankruptcy exemptions. Your state’s law will determine whether you can choose the federal bankruptcy exemptions, or if you must use your state’s bankruptcy exemptions. But if your state’s law allows you to choose between the two sets of bankruptcy exemptions, you must choose one or the other, and cannot choose exemptions from both your state and the federal exemptions.

In Wisconsin, bankruptcy exemptions play a crucial role in protecting certain assets of individuals filing for bankruptcy. Wisconsin law allows debtors to choose between the state's bankruptcy exemptions and the federal bankruptcy exemptions, but they cannot mix and match between the two systems; a choice must be made for one set of exemptions in their entirety. The Wisconsin exemptions include specific protections for a debtor's homestead, personal property, insurance, pensions, public benefits, tools of the trade, and wages, among others. The federal exemptions, which are adjusted periodically for inflation, also cover similar categories but may differ in the amounts and types of property that are protected. Debtors should carefully consider which set of exemptions best suits their situation, and they may benefit from consulting with an attorney to make an informed decision that maximizes their asset protection during the bankruptcy process.