Q: The question is using the Federal Bankruptcy Wildcard Exemption with the unused portion of the homestead exemption
If I am not a homeowner but rather I rent, am I still eligible to use the unused portion of the homestead exemption with the federal wild card exemption or must you own a home to even qualify to be given that option... Thank You
A:
The enhanced personal property exemption or "wild card" was designed to be used for people who do not claim a homestead exemption because they rent or live with somebody or just don't own a home for any reason. Interestingly, you can own a mobile home and also get the enhanced exemption.
This exemption allows an additional $4,000 personal property exemption (on top of the existing $1,000 exemption) for a total of $5,000 in personal property exemptions. This exemption can be used for cars, boats and all other items of personal property. Don't forget when valuing property that you would not use the price that you purchased an item for but the price that you could sell if for at a garage sale or auction which would be quite low.
David Luther Woodward agrees with this answer
A:
The "Wildcard" Exemption is precisely to be used in the absence of a homestead exemption. That is, the Wildcard exemption is only available to a debtor in bankruptcy if the debtor does not claim a homestead exemption.
So, yes, the Wildcard exemption is available to a debtor who is as a renter, in a bankruptcy proceeding.
David Luther Woodward agrees with this answer
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