Idaho's bankruptcy exemptions decide what you walk away with. They're the difference between a Chapter 7 that erases debt and lets you keep your life intact, and one where the trustee sells your assets. The good news: for the vast majority of Idaho filers, the exemptions cover everything that matters.
This guide is the complete current list, with the actual dollar amounts, the law that creates each one, and the way each one plays out in real cases.
Idaho is an opt-out state
The federal bankruptcy code (11 U.S.C. § 522) offers two exemption schemes: state-specific and federal. States can either let filers choose, or opt out and require state exemptions. Idaho is opt-out, meaning you must use Idaho's state exemption list, plus a few federal non-bankruptcy exemptions like ERISA for retirement accounts.
You cannot pick and choose from the federal bankruptcy list. The whole question is: what does Idaho protect?
Homestead: $175,000
Idaho Code § 55-1003
Idaho's homestead exemption protects up to $175,000 of equity in your primary residence. The exemption is automatic for an owner-occupied home. You don't have to file a declaration to claim it in bankruptcy.
"Equity" means the fair market value of the home minus what you owe on it (mortgage, HELOC, judgment liens). For most Idahoans, the math works out fine:
- $400,000 home, $300,000 mortgage = $100,000 equity → fully exempt
- $500,000 home, $200,000 mortgage = $300,000 equity → $175,000 exempt, $125,000 at risk in Chapter 7
That second case is exactly when Chapter 13 becomes the right tool. You keep the home by paying the non-exempt portion into the plan.
A few important wrinkles:
- The exemption applies to your primary residence only. A second home or rental property isn't covered.
- Manufactured homes are eligible if they're your primary residence.
- Married couples filing jointly share a single $175,000 cap on the family home.
Motor vehicles: $10,000
Idaho Code § 11-605(3)
Idaho exempts up to $10,000 of equity in motor vehicles. This is one vehicle per debtor, so a married couple filing jointly can protect up to $10,000 each on separate vehicles.
If you're financed and current, you almost certainly keep the car: the equity (value minus loan balance) is usually well within the exemption. If you own the car free and clear and it's worth more than $10,000, the difference is at risk in Chapter 7, but you can often cover it with the wildcard exemption (below).
Retirement: effectively unlimited
ERISA-qualified retirement accounts are fully protected:
- 401(k), 403(b), 457 plans
- Most employer pensions
- Profit-sharing plans
IRAs (traditional and Roth) are protected under federal bankruptcy law up to approximately $1.5 million in aggregate, with the cap adjusted every three years. Inherited IRAs are not protected in bankruptcy under federal law (per the Supreme Court's Clark v. Rameker decision), though Idaho has some state-law protection.
Social Security retirement, SSI, SSDI, and most VA benefits are also protected.
Household goods: up to $750 per item, $7,500 total
Idaho Code § 11-605(1)
Furniture, appliances, electronics, clothing, books, and musical instruments used by you or your dependents are exempt up to $750 per item, with an aggregate cap of $7,500.
In practice, this protects everything in a normal household. The trustee isn't going to sell your couch.
Tools of the trade: $2,500
Idaho Code § 11-605(3)
Tools, books, and implements used in your trade or profession are exempt up to $2,500. This covers carpenter's tools, mechanic's equipment, professional libraries, a contractor's truck (in combination with the vehicle exemption), and similar working assets.
Wages: 75% (or 30× federal minimum wage)
Idaho Code § 11-207
Unpaid wages and earnings are exempt up to the greater of:
- 75% of disposable earnings, or
- 30 times the federal minimum wage per week
This same rule limits wage garnishment outside bankruptcy.
Wildcard: $1,500
Idaho Code § 11-605(10)
A $1,500 wildcard exemption can be applied to any personal property of your choosing. Most commonly used for:
- Cash on hand at filing
- Bank account balances
- Tax refunds (the portion accrued at filing)
- Coverage above the per-category caps on other property
It's small but useful, and often the difference between an asset case and a no-asset case.
Life insurance and annuities
Idaho Code §§ 41-1833, 41-1836
Most cash-value life insurance and annuities are exempt to the extent they're "reasonably necessary" for support. Term life insurance has no cash value and isn't an issue.
Public benefits
Fully exempt:
- Unemployment compensation
- Workers' compensation
- Public assistance / TANF
- Crime victims' compensation
Personal injury settlements: $25,000
Idaho Code § 11-604
Payments for personal injury (not including pain and suffering or actual pecuniary loss) are exempt up to $25,000. Wrongful death recoveries reasonably necessary for support are also protected.
Child support and alimony
Owed but unpaid child support and spousal support are fully exempt. They belong to the receiving spouse and dependents, not the bankruptcy estate.
The exemption strategy
For 90% of Idaho filers, the exemptions cover everything they own. The strategy questions only come up when one of these is true:
- High home equity above the homestead cap
- A second vehicle with significant equity
- A non-retirement investment account (brokerage, crypto, taxable funds)
- A rental property or second home
- A pending lawsuit or settlement you're entitled to
- A recent tax refund you haven't received yet
- Inheritance within 180 days of filing
If any of those apply, the exemption analysis becomes the most important part of your case. We do this analysis at the free consultation, well before you file, when there's still time to plan around any exposure.
What to do next
The exemption rules are technical, but the diagnosis is fast. At your free consultation we walk through what you own, apply the exemptions, and tell you what, if anything, is at risk. Most calls end with "you're fully protected." A few end with a strategy conversation.