Asset Protection Calculator: Which Assets Are Safe From Creditors?
How much of your wealth is protected from creditors?
Legal Disclaimer: This calculator applies general state bankruptcy exemption rules. Actual results depend on your specific court, recent transactions, income, and local rules. Verify all figures with a licensed bankruptcy attorney before making decisions.
Asset Values (Equity, Not Market Value)
Total Unsecured Debt to Discharge
Credit cards, medical bills, personal loans — exclude mortgage
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Bankruptcy exemptions determine which assets you keep and which are available to creditors. The exemption system exists precisely to ensure that a bankruptcy filing does not leave filers with nothing — federal law and state law both guarantee that certain categories of assets (your home up to a limit, your car up to a limit, retirement accounts, household goods, and others) cannot be taken to satisfy debt. But the limits vary dramatically by state, and understanding them determines whether Chapter 7 or Chapter 13 makes more sense for your specific asset mix. This calculator applies your state's bankruptcy exemptions (or the federal exemptions, if available in your state) to your actual asset values to show: total protected assets, total unprotected (non-exempt) assets that a Chapter 7 trustee could liquidate, the equity at risk in your home and vehicle, and whether the unsecured debt you are trying to discharge justifies the non-exempt asset exposure. The result is a clear picture of what you protect, what you lose, and which bankruptcy chapter makes the most financial sense for your situation — before you pay a lawyer to tell you the same thing.
- →You are considering Chapter 7 bankruptcy and want to know what assets you would keep vs. lose
- →You are evaluating Chapter 7 vs. Chapter 13 and want to understand the asset protection difference
- →You have a home with equity above the homestead exemption and want to quantify your risk
- →You want to understand how retirement accounts, vehicles, and personal property are treated in bankruptcy
- →You have a judgment against you and want to know which assets are protected from collection
- →You are planning ahead and want to legally maximise asset protection before a financial crisis
Carlos, 52, Texas. Home equity: $95,000. Vehicle equity: $12,000. Retirement accounts: $180,000. Checking/savings: $8,400. Personal property: $14,000. Business equipment: $22,000. Total assets: $331,400. Texas has unlimited homestead exemption (primary residence), $50,000 vehicle exemption per person, unlimited retirement account exemption. Carlos's protected assets: $287,000. Non-exempt: $44,400 (personal property overage + business equipment above $50K aggregate). Chapter 7 risk: trustee could liquidate $44,400 to satisfy creditors. Chapter 13 alternative: keep all assets, repay non-exempt value through a 3–5 year plan.
- ✕Assuming all retirement accounts are treated equally — ERISA plans have unlimited protection, while IRAs have a dollar cap
- ✕Not comparing federal vs. state exemptions in states that allow a choice — one set is often significantly more favorable
- ✕Transferring assets before bankruptcy to protect them — fraudulent transfers within 2 years can be reversed by the trustee
- ✕Ignoring the homestead exemption limit when evaluating Chapter 7 — home equity above the limit is at real risk
- ✕Assuming non-exempt assets will always be seized — trustees frequently abandon assets when liquidation costs exceed recovery
What is the difference between federal and state bankruptcy exemptions?
Federal bankruptcy exemptions are set by federal law and available in about half of US states (states that allow the 'opt-in' choice). State exemptions vary dramatically — Texas and Florida have unlimited homestead exemptions, while other states cap them at $25,000–$75,000. In states that allow choice, filers can compare federal vs. state exemptions and select the more favorable set. The calculator applies the relevant exemptions based on your state selection.
Are retirement accounts protected in bankruptcy?
Generally yes, and often completely. ERISA-qualified retirement accounts (401k, 403b, pension plans) have unlimited federal protection in bankruptcy. IRAs are protected up to approximately $1.5 million under federal law (adjusted periodically). Roth IRAs have the same federal protection as traditional IRAs. State exemptions for retirement accounts are often even broader. In most cases, retirement accounts are the safest assets in a bankruptcy scenario.
Can I protect my home equity in Chapter 7?
Up to your state's homestead exemption limit. If your home equity exceeds the limit, the Chapter 7 trustee can force a sale to capture the non-exempt equity — although trustees frequently negotiate alternatives when equity overage is modest. In states with low homestead exemptions (some states are as low as $25,000), homeowners with significant equity often choose Chapter 13 instead, where they keep the home by paying the non-exempt equity value to creditors over 3–5 years.
What happens to non-exempt assets in Chapter 7?
Non-exempt assets become part of the bankruptcy estate and may be liquidated by the trustee to pay unsecured creditors. However, trustees have discretion — if the non-exempt equity is modest and liquidation costs would exceed recovery, trustees often abandon the asset. Assets with clear non-exempt equity above $2,000–5,000 are more likely to be liquidated. The key variable is the ratio of non-exempt value to unsecured debt being discharged.
How does Chapter 13 protect more assets than Chapter 7?
Chapter 13 does not require liquidation of any assets. Instead, filers propose a 3–5 year repayment plan that must pay unsecured creditors at least as much as they would have received from a Chapter 7 liquidation of non-exempt assets. This 'best interests of creditors' test means you keep all assets — including non-exempt ones — in exchange for a structured repayment commitment. For homeowners with significant non-exempt equity, Chapter 13 is almost always the better choice.
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