What Property Is Exempt From Creditors in Wisconsin?

In Wisconsin, a judgment creditor cannot simply take whatever you own. State law shields a specific list of property and income, and the dollar figures are set by statute. Under Wisconsin Statutes section 815.20, you can protect up to $75,000 of equity in your homestead (the dwelling and surrounding land you occupy). Wisconsin Statutes section 815.18 protects a $4,000 motor vehicle, $12,000 in household goods and consumer items, $5,000 in depository (bank) accounts, and most tax-exempt retirement accounts in full. On top of that, Wisconsin shields more of your paycheck than federal law does: under section 812.34, a creditor can garnish only 20% of your disposable earnings, compared with the federal cap of 25%. Knowing these numbers, and how to claim them, is what keeps a judgment from emptying your accounts and your home.

The homestead exemption: $75,000

Wisconsin's homestead exemption (section 815.20) protects up to $75,000 of the equity in your principal residence from most judgment creditors. "Homestead" includes a house, condominium, mobile home, or up to 40 acres of land you occupy as your home. The exemption is based on your equity, not the property's full value, so if your home is worth $250,000 and you owe $200,000 on the mortgage, your $50,000 of equity is fully protected.

Important limits apply. The homestead exemption does not stop foreclosure by your own mortgage lender, and it does not block a construction lien, property-tax claim, or a debt you specifically secured with the home. It protects against general judgment creditors, such as a credit-card company or a medical-debt buyer that has sued you and won. If you sell your homestead, the exempt proceeds remain protected for up to two years if you intend to buy another home.

Your wages: only 20% can be garnished

The federal Consumer Credit Protection Act lets creditors take the lesser of 25% of disposable earnings or the amount above 30 times the federal minimum wage. Wisconsin is more generous to debtors. Under section 812.34(2), a creditor may garnish only 20% of your disposable earnings (after legally required deductions), or the amount by which your disposable earnings exceed 30 times the federal minimum hourly wage, whichever is less.

Wisconsin also has a true poverty exemption. If your household income is at or below the federal poverty line, your earnings can be 100% exempt from garnishment. You claim this by filing a debtor's answer with the court asserting that garnishment would impose financial hardship; the form is served with the garnishment papers. Wisconsin earnings garnishments run for a 13-week period, after which the creditor must start a new one. Note that the federal minimum wage and Wisconsin's minimum wage are both $7.25 per hour as of 2026, but you should confirm the current minimum wage with the Wisconsin Department of Workforce Development before relying on the 30-times calculation, because that figure can change.

Vehicles, household goods, and bank accounts

Section 815.18(3) lists most personal-property exemptions. The key categories include:

• Motor vehicle: Up to $4,000 of equity in one or more vehicles. You may also add any unused portion of the consumer-goods exemption to your vehicle, which can significantly increase the protected amount.
• Consumer goods: Up to $12,000 (aggregate) in household goods, furnishings, clothing, appliances, books, musical instruments, jewelry, firearms, sporting goods, and similar items held primarily for personal, family, or household use.
• Depository accounts: Up to $5,000 in the aggregate held in bank, credit-union, or other depository accounts. This is the protection that matters most after a bank levy.
• Business and farm property: Up to $15,000 (aggregate) in equipment, inventory, farm products, and professional books used in your trade or business.
• Life insurance and annuities: The unmatured contract and a substantial amount of accrued value are protected under section 815.18(3)(f).

These are individual exemptions, so a married couple who jointly owns property may each claim them, effectively doubling many of the amounts.

Retirement accounts and public benefits

Tax-qualified retirement plans, IRAs, 401(k)s, and similar accounts are protected under section 815.18(3)(j) and federal law. Public benefits get strong protection from both Wisconsin and federal law:

• Social Security and SSI: Exempt under federal law (42 U.S.C. section 407). Federal banking rules require banks to automatically protect up to two months of directly deposited Social Security and certain other federal benefits when a levy hits your account.
• Unemployment compensation: Exempt under Wisconsin Statutes section 108.13.
• Worker's compensation: Exempt under section 102.27.
• Public assistance: FoodShare, Wisconsin Works (W-2), and other public-aid benefits are exempt under section 49.96.
• Veterans' benefits: Protected under federal law.

The key practical point: exempt benefits do not lose their protection just because they land in a checking account, but mixing exempt and non-exempt money can complicate a levy. Keeping benefit deposits in a separate account makes the protection far easier to prove.

How to actually claim your exemptions

Exemptions are not always automatic. If a creditor freezes your bank account or starts a garnishment, you generally must assert your exemption in writing, and there are deadlines. After a bank account is frozen on a levy or earnings garnishment, you typically receive an exemption notice and a form. You must complete and return it, and may need to file it with the court that issued the judgment, within the time stated on the notice. Missing that deadline can let the creditor take money that the law would otherwise have protected.

Practical steps if you are levied or garnished in Wisconsin:

• Read every document immediately and note the response deadline.
• Identify which funds are exempt (Social Security, wages within the protected percentage, the $5,000 depository exemption) and gather proof such as deposit records and award letters.
• File the exemption claim or debtor's answer with the court and serve the creditor as instructed.
• If you believe the wrong amount was taken, you can ask the court for a hearing.

The FDCPA and where to verify

Separate from exemptions, the federal Fair Debt Collection Practices Act protects you from abusive collection tactics by third-party debt collectors, and the federal Fair Credit Reporting Act governs what appears on your credit report. Wisconsin layers its own consumer protections on top, including the Wisconsin Consumer Act, which regulates many consumer credit transactions.

Because dollar figures and procedures are updated periodically, verify current numbers before you act. The Wisconsin Department of Justice (Office of the Attorney General) provides consumer-protection resources, and the Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP) is the state's primary consumer-complaint agency. You can confirm the exact statutory exemption amounts in the official text of Wisconsin Statutes sections 815.18, 815.20, and 812.34 on the Wisconsin Legislature's website. Because exemption deadlines are short and the dollar limits interact in technical ways, anyone facing a large judgment or a bank levy should consider speaking with a Wisconsin consumer attorney or a local legal-aid office.

Official Wisconsin Sources

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

• Wisconsin Department of Justice - Office of Consumer Protection (Protecting Consumers) — official Wisconsin agency.
• File a Complaint - Wisconsin Dept. of Agriculture, Trade and Consumer Protection (DATCP)
• Wisconsin Statutes Chapter 427 - Consumer Transactions - Debt Collection (Wisconsin Consumer Act)

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