Filing Chapter 7 Bankruptcy in Wisconsin (2026)
Reviewed by DocDraft Legal Team · Wisconsin · Last updated August 18, 2026
Chapter 7 bankruptcy is federal law, but the property you keep is shaped by Wisconsin. Wisconsin is a choice state: you may elect either the federal 11 U.S.C. 522(d) exemptions or the Wisconsin exemption set, but not both, and you use one system in full. This page explains Wisconsin's $75,000 homestead exemption under Wis. Stat. 815.20, the vehicle, consumer-goods, wage, and retirement figures under Wis. Stat. 815.18, the means-test median income, and the two federal bankruptcy courts where Wisconsinites file. Chapter 7 discharges most unsecured debt but not most student loans, recent taxes, child support, or alimony.
Does Wisconsin use state or federal bankruptcy exemptions?
Wisconsin is a choice state. You may elect either the federal 11 U.S.C. 522(d) exemptions or the Wisconsin exemptions under Wis. Stat. 815.18 and 815.20, but you cannot mix the two systems. You pick the single set that best protects your property, so compare both against your home equity and assets before you file.
Can I keep my house if I file Chapter 7 in Wisconsin?
Often yes. Wisconsin's homestead exemption under Wis. Stat. 815.20 protects up to $75,000 of equity in a home you own and occupy, and a married couple who both own it may each claim $75,000. If your home equity fits within that amount, Chapter 7 generally lets you keep the house.
Can I keep my car if I file Chapter 7 in Wisconsin?
Usually yes if your equity is modest. Wisconsin exempts $4,000 of motor vehicle equity under Wis. Stat. 815.18(3)(g), and you can add any unused portion of the $12,000 consumer-goods exemption to protect more car equity. If your equity fits within that combined amount, the vehicle is protected.
What is the income limit to file Chapter 7 in Wisconsin?
For cases filed on or after July 15, 2026, the U.S. Trustee median income figures for Wisconsin are $71,168 for one earner, $90,252 for two, $108,516 for three, and $133,384 for four, adding $11,100 per additional person. At or below your household figure, you pass the first part of the means test.
Wisconsin's Federal-or-State Choice, the $75,000 Homestead, and Where to File
Wisconsin is one of the roughly sixteen choice states: it has not opted out of the federal exemptions, so a debtor filing here may elect either the federal 11 U.S.C. 522(d) set or the Wisconsin set under Wis. Stat. 815.18 and 815.20. You choose one system in full and cannot combine them. Wisconsin's headline homestead exemption under Wis. Stat. 815.20 protects up to $75,000 of equity in a home you own and occupy, and because Wisconsin is a marital-property state, spouses who jointly own the home may each claim $75,000. The Wisconsin set exempts $4,000 in a motor vehicle under 815.18(3)(g) plus any unused consumer-goods amount, up to $12,000 in consumer goods and household furnishings under 815.18(3)(d), and up to $15,000 in tools of the trade under 815.18(3)(b). Wisconsin's marital-property character means property and debts are often shared between spouses, which affects how exemptions and non-exempt equity are calculated. Wisconsinites file in one of two federal bankruptcy courts: the U.S. Bankruptcy Court for the Eastern District of Wisconsin or the Western District of Wisconsin, based on where they have lived for most of the prior 180 days.
Relevant Laws
Wisconsin Homestead Exemption (Wis. Stat. 815.20)
Sets Wisconsin's homestead exemption at up to $75,000 of equity in a home the debtor owns and occupies. Because Wisconsin is a marital-property state, spouses who jointly own the home may each claim $75,000. This is the exemption that lets many Wisconsin homeowners keep their house in Chapter 7.
Wisconsin Property Exemptions (Wis. Stat. 815.18)
Wisconsin's main personal-property exemption statute, covering the $4,000 motor vehicle exemption at 815.18(3)(g), $12,000 in consumer goods at 815.18(3)(d), $15,000 in tools of the trade at 815.18(3)(b), the 80 percent wage exemption at 815.18(3)(h), and retirement benefits at 815.18(3)(j).
Wisconsin Wage Garnishment Limit (Wis. Stat. 812.34)
Establishes the earnings exemption used in bankruptcy and garnishment, protecting 80 percent of a debtor's net disposable earnings from garnishment, subject to a poverty-line floor. This works alongside the 815.18(3)(h) wage exemption to shield most take-home pay.
Federal Bankruptcy Code Exemptions and Means Test (11 U.S.C. 522, 707)
The federal law behind Chapter 7. Section 522(b) lets a debtor in a choice state such as Wisconsin elect the federal 522(d) exemptions or the state set, and section 707(b) sets the means test measured against state median income.
Regional Variances
Wisconsin Chapter 7 Exemption Table
Homestead
Wis. Stat. 815.20: up to $75,000 of equity in a home you own and occupy. As a marital-property state, Wisconsin lets each spouse who owns the home claim $75,000, so a couple can protect up to $150,000. Alternatively you may elect the federal 11 U.S.C. 522(d)(1) homestead instead.
Motor vehicle
Wis. Stat. 815.18(3)(g): $4,000 of equity in a motor vehicle, plus any unused portion of the $12,000 consumer-goods exemption under 815.18(3)(d). Combining the two often protects a modestly valued car in full.
Wildcard
Wisconsin has no standalone dollar wildcard, but unused consumer-goods exemption under Wis. Stat. 815.18(3)(d) can be applied to a vehicle. Filers needing a true wildcard sometimes elect the federal set, whose 522(d)(5) wildcard covers any property.
Consumer goods and household property
Wis. Stat. 815.18(3)(d): up to $12,000 in aggregate value for household goods and furnishings, apparel, appliances, books, musical instruments, and similar consumer goods kept for personal or family use.
Wages
Wis. Stat. 815.18(3)(h) and 812.34: 80 percent of net earnings are exempt from garnishment, subject to a poverty-line floor. Earnings already withheld are protected when paid, which shields most take-home pay from creditors.
Retirement and tools of trade
Wis. Stat. 815.18(3)(j) exempts retirement benefits and plans, and 815.18(3)(b) exempts up to $15,000 in tools, equipment, and professional books used in the debtor's business. ERISA-qualified plans are also excluded from the estate under federal law.
Suggested Compliance Checklist
Confirm the current Wisconsin means-test median income
Before you file days after startingCheck your household size against the U.S. Trustee Wisconsin median income figures in effect on your filing date, since these update periodically. For cases filed on or after July 15, 2026 the figures are $71,168 for one, $90,252 for two, $108,516 for three, and $133,384 for four, adding $11,100 per additional person.
Complete the pre-filing credit counseling course
Within 180 days before filing days after startingTake an approved credit counseling course from a provider authorized for your Wisconsin district and keep the certificate. You must file it with your petition. Skipping this can get your case dismissed before your debts are addressed.
Compare the federal and Wisconsin exemption sets and value your assets
Before preparing your schedules days after startingDecide between the federal 11 U.S.C. 522(d) set and the Wisconsin set under Wis. Stat. 815.18 and 815.20, weighing the $75,000 homestead and marital-property doubling. Value your home, vehicle, and personal property so you can match assets to exemptions. You must choose one system in full.
Prepare and file your petition and schedules
Filing day days after startingFile your petition, schedules, and exemption claims in the U.S. Bankruptcy Court for the Eastern or Western District of Wisconsin, based on where you have lived for most of the prior 180 days. Filing triggers the automatic stay that pauses collection and garnishment.
Attend the 341 meeting and finish the debtor education course
Before discharge days after startingAttend the 341 meeting of creditors and answer the trustee's questions under oath, then complete the required post-filing financial management course and file the certificate. Both are required before the court will grant your discharge. An attorney can help with contested exemptions.
| Task | Description | Document | Days after starting |
|---|---|---|---|
| Confirm the current Wisconsin means-test median income | Check your household size against the U.S. Trustee Wisconsin median income figures in effect on your filing date, since these update periodically. For cases filed on or after July 15, 2026 the figures are $71,168 for one, $90,252 for two, $108,516 for three, and $133,384 for four, adding $11,100 per additional person. | - | Before you file |
| Complete the pre-filing credit counseling course | Take an approved credit counseling course from a provider authorized for your Wisconsin district and keep the certificate. You must file it with your petition. Skipping this can get your case dismissed before your debts are addressed. | - | Within 180 days before filing |
| Compare the federal and Wisconsin exemption sets and value your assets | Decide between the federal 11 U.S.C. 522(d) set and the Wisconsin set under Wis. Stat. 815.18 and 815.20, weighing the $75,000 homestead and marital-property doubling. Value your home, vehicle, and personal property so you can match assets to exemptions. You must choose one system in full. | - | Before preparing your schedules |
| Prepare and file your petition and schedules | File your petition, schedules, and exemption claims in the U.S. Bankruptcy Court for the Eastern or Western District of Wisconsin, based on where you have lived for most of the prior 180 days. Filing triggers the automatic stay that pauses collection and garnishment. | - | Filing day |
| Attend the 341 meeting and finish the debtor education course | Attend the 341 meeting of creditors and answer the trustee's questions under oath, then complete the required post-filing financial management course and file the certificate. Both are required before the court will grant your discharge. An attorney can help with contested exemptions. | - | Before discharge |
Frequently Asked Questions
Under Wis. Stat. 815.20, Wisconsin's homestead exemption protects up to $75,000 of equity in a home you own and occupy. Because Wisconsin is a marital-property state, a home owned jointly or as marital property lets each spouse claim up to $75,000, so a couple can protect up to $150,000 in combined home equity.
Wisconsin exempts $4,000 of equity in a motor vehicle under Wis. Stat. 815.18(3)(g). You may also add any unused portion of the $12,000 consumer-goods exemption under 815.18(3)(d) to protect additional vehicle equity, which often lets a filer keep a modestly valued car free and clear in Chapter 7.
Yes. Wisconsin has not opted out of the federal exemptions, so you may elect either the federal 11 U.S.C. 522(d) set or the Wisconsin set under Wis. Stat. 815.18 and 815.20. You choose one system in full and cannot combine them, so compare both against your home equity and other assets first.
No. Chapter 7 discharges most unsecured debt like credit cards and medical bills, but it does not erase most student loans, recent income taxes, child support, or alimony, and it will not discharge debts from fraud. Secured debts like a car loan remain unless you surrender the collateral or reaffirm the loan.
Largely yes. Under Wis. Stat. 815.18(3)(h) and 812.34, 80 percent of your net earnings are exempt from garnishment, and retirement plans are exempt under Wis. Stat. 815.18(3)(j). ERISA-qualified plans such as most 401(k)s are also separately excluded from the bankruptcy estate under federal law.
Other Wisconsin guides
Ready to Draft Your Document?
Get AI-powered legal documents with attorney review included. Plans start at $39.99/mo.