New Hampshire Bankruptcy Exemptions: What You Get to Keep

New Hampshire is one of the minority of states that lets you choose between the state exemption set and the federal bankruptcy exemptions under 11 U.S.C. § 522(d) — you pick whichever package protects more of your property, but you must take one entire set, not a mix-and-match of the best parts of each. New Hampshire's headline protection is its homestead exemption of $120,000 under RSA 480:1, which shields that much equity in the home you occupy as your principal residence. That figure is per debtor, so a married couple who both own and live in the home can generally protect up to $240,000 of equity in a joint filing. This ability to opt into the federal set, and the size of the homestead, is exactly what varies from state to state, so the New Hampshire rule below will not match what a neighbor in another state experiences.

The state-or-federal choice

Most states force debtors to use the state exemption list. New Hampshire does not. Under New Hampshire law you may instead elect the federal exemptions in 11 U.S.C. § 522(d). You cannot blend the two systems — if you take the New Hampshire set you use it for everything, and if you take the federal set you use it for everything. Married couples filing jointly must both choose the same system.

Why the choice matters: the federal homestead exemption is far smaller than New Hampshire's. The federal figure adjusts every three years and, as of the April 2025 adjustment, sits at roughly $31,575 per filer (confirm the current number, because it changes on a three-year cycle). New Hampshire's $120,000 homestead dwarfs that, so a homeowner with meaningful equity almost always chooses the state set. By contrast, a renter or someone with little home equity may prefer the federal set, because the federal system includes a generous "wildcard" that lets you apply unused homestead room to any property you like.

The New Hampshire homestead exemption

RSA 480:1 protects $120,000 of equity in your homestead — the dwelling you occupy as your home. The protection attaches automatically; you do not have to file a separate homestead declaration the way some states require. It covers a house, and in many cases a manufactured (mobile) home, that serves as your principal residence. It does not protect a vacation property, a rental you do not live in, or raw investment land.

Two practical limits are worth knowing. First, the homestead exemption protects equity, not value — if your mortgage balance eats up most of what the home is worth, there may be little equity for the exemption to shield, but also little for a trustee to reach. Second, the exemption is a shield against general unsecured creditors and the bankruptcy trustee; it does not defeat a voluntary mortgage, a properly recorded mechanic's lien, or certain tax obligations.

Vehicle, household goods, and tools

New Hampshire's personal-property exemptions appear mostly in RSA 511:2. Commonly cited protections include:

  • Motor vehicle: one automobile, up to approximately $10,000 in value.
  • Household furniture: up to roughly $3,500.
  • Necessary clothing, beds, bedsteads, and bedding for you and your family, with no dollar cap on these necessities.
  • Tools of your occupation: up to about $5,000, which helps tradespeople and the self-employed keep working.
  • Bibles, books, and library up to several hundred dollars, plus a cooking stove, heating equipment, and a refrigerator.
  • Jewelry up to roughly $500, and certain food, fuel, and provisions.

Because the legislature adjusts these caps from time to time, treat the dollar figures above as the established ranges and verify the exact current amount in the live text of RSA 511:2 before you rely on it. The categories themselves are stable; the precise ceilings are what occasionally move.

The New Hampshire wildcard

New Hampshire offers a wildcard exemption under RSA 511:2 that lets you protect property the specific categories do not otherwise cover. It generally consists of $1,000 in any property, plus up to $7,000 of the unused portion of certain other exemptions (such as the furniture, tools, books, and provisions categories). That means a filer who does not use up the furniture or tools allowances can redirect that unused room — up to the cap — to cash, a second vehicle, or other assets. This is the tool people use to keep a tax refund, a modest bank balance, or a sentimental item that does not fit a named category.

Wages, benefits, and other protections

New Hampshire is notably protective of wages. The state sharply restricts wage garnishment by ordinary consumer creditors, so for most everyday debts your paycheck enjoys strong protection — a stricter posture than the federal floor. For context, the federal Consumer Credit Protection Act caps most garnishments at 25% of disposable earnings (or the amount above 30 times the federal minimum wage, whichever is less); New Hampshire's rules are generally more favorable to the debtor than that federal ceiling. Retirement accounts, many public benefits, and certain insurance proceeds also carry their own exemptions and survive bankruptcy in most cases.

How exemptions actually work in a bankruptcy case

In a Chapter 7 case, the trustee can sell only nonexempt property to pay creditors. If everything you own fits within your chosen exemption set — a common outcome for households of modest means — you keep all of it, and the case is described as a "no-asset" case. In a Chapter 13 case, exemptions still matter: the value of any nonexempt property sets a floor for how much unsecured creditors must receive through your repayment plan. Either way, you claim exemptions on Schedule C of your bankruptcy paperwork, and you must list the specific statute (for example, RSA 480:1 for the homestead) and the value you are protecting.

One federal wrinkle affects which state's exemptions you may even use. Under 11 U.S.C. § 522(b)(3), you must have lived in New Hampshire (your domicile) for the better part of the two years before filing to use New Hampshire's exemptions. If you moved recently, the law may point you to the exemptions of the state where you previously lived. If you have relocated within the last two years, confirm which state's list applies before you file.

Federal consumer-law backdrop

Exemptions decide what you keep; separate federal statutes govern how creditors may treat you. The federal Fair Debt Collection Practices Act (FDCPA) restricts abusive third-party collection tactics, and the federal Fair Credit Reporting Act (FCRA) governs how a bankruptcy and the debts in it are reported. Filing triggers the automatic stay under 11 U.S.C. § 362, which halts collection calls, lawsuits, garnishments, and foreclosure activity while your case proceeds. These federal protections operate on top of — not instead of — New Hampshire's exemption scheme.

Where to verify

Always confirm current figures against primary sources, because dollar caps and the federal cycle both change. Read the live text of RSA 480:1 (homestead) and RSA 511:2 (personal property and wildcard) on the New Hampshire General Court's website, and check 11 U.S.C. § 522 for the federal set and its inflation-adjusted amounts. For questions about debt collection, unfair practices, and your rights as a consumer, contact the New Hampshire Department of Justice, Consumer Protection and Antitrust Bureau, the consumer-protection arm of the New Hampshire Attorney General's Office. Because a wrong exemption choice can cost you property, and because the state-versus-federal decision turns on the specific facts of your assets, consider consulting a New Hampshire bankruptcy attorney or a nonprofit credit counselor before you file.

This page is based on New Hampshire law. Limits and deadlines change — verify the current details directly with the official New Hampshire sources below. This is general legal information, not legal advice.

Federal law also applies. Federal laws like the Fair Debt Collection Practices Act and Fair Credit Reporting Act protect you nationwide, on top of New Hampshire’s own rules.

Frequently asked questions

Does New Hampshire let me use the federal bankruptcy exemptions?

Yes. New Hampshire is one of the states that allows you to choose between the state exemption set and the federal exemptions under 11 U.S.C. § 522(d). You must pick one full set — you cannot combine the best pieces of each — and married couples filing jointly must both use the same system.

How much home equity can I protect in a New Hampshire bankruptcy?

RSA 480:1 protects $120,000 of equity in the home you occupy as your principal residence. The protection is per debtor, so a married couple who both own and live in the home can generally shield up to $240,000 of equity in a joint filing. It covers equity, not total value, and does not defeat your mortgage.

Can I keep my car if I file bankruptcy in New Hampshire?

Usually yes. New Hampshire's motor-vehicle exemption protects roughly $10,000 of value in one automobile, and the wildcard exemption can stack on top to cover additional equity. If your car's equity exceeds those amounts, you may need to use the federal set instead or address the excess in your plan. Verify the current cap in RSA 511:2.

Is New Hampshire's homestead better than the federal homestead?

For most homeowners, yes. New Hampshire's $120,000 homestead is far larger than the federal homestead, which adjusts every three years and was roughly $31,575 per filer as of the April 2025 adjustment. Homeowners with equity typically choose the state set, while renters often prefer the federal set for its larger wildcard.

Do I have to have lived in New Hampshire to use its exemptions?

Generally yes. Under 11 U.S.C. § 522(b)(3), you must have been domiciled in New Hampshire for the greater part of the 730 days before filing to claim its exemptions. If you moved recently, the law may direct you to a prior state's exemptions, so confirm which set applies before filing.

This article is general legal information, not legal advice, and may not reflect the most current law or the law in your jurisdiction. Laws vary by state and change over time. For advice about your specific situation, consult a licensed attorney.

Knowing your rights is the first step

Join thousands committing to calmly and consistently exercise their constitutional rights.

Take the Pledge