Alaska Bankruptcy
Exemption Calculator

Alaska allows debtors to choose between the state exemption scheme and the federal bankruptcy exemptions under 11 U.S.C. §522(d).

Bankruptcy exemptions determine which assets you can keep when filing Chapter 7 bankruptcy or how much equity is protected in Chapter 13. The specific dollar limits in Alaska directly determine whether a Chapter 7 trustee can liquidate your home, car, or savings — and how much unsecured creditors must receive in a Chapter 13 plan.

Exemptions protect specific categories of property up to defined dollar limits: your home (homestead), vehicles, personal belongings, wages, retirement accounts, and tools needed for your occupation. If the equity in an asset exceeds the applicable exemption, a Chapter 7 trustee may sell the asset, pay you the exempt amount, and distribute the remainder to creditors.

In Chapter 13, exemptions determine the minimum amount your repayment plan must pay unsecured creditors.

Alaska's exemption amounts can differ substantially from neighboring states and from the federal baseline. The exemption amounts in Alaska fall in the mid-range nationally, offering moderate protection for homeowners and personal property.

These amounts are periodically adjusted, so confirming the current figures with a bankruptcy attorney before filing is essential.

Alaska's exemption statutes are found at AS §§ 09.38.010 through 09.38.500. Alaska has NOT opted out of federal exemptions — filers choose the system that protects more.

The federal system's $15,075 wildcard (11 U.S.C. § 522(d)(5)) often makes it preferable for filers without home equity.

Non-obvious Alaska exemptions include: liquor licenses (fully exempt under AS § 09.38.015), commercial fishing permits and licenses (exempt), and the Alaska Permanent Fund dividend (exempt). Alaska's retirement accounts held in PERS (Public Employees' Retirement System) or TRS (Teachers' Retirement System) are fully exempt.

Alaska's $4,000 state wildcard applies to any personal property not otherwise covered.

The homestead exemption in Alaska protects $72,900 of equity in your primary residence from creditors in bankruptcy. Must file a homestead declaration.

Applies to primary residence only.

If your home equity exceeds the Alaska homestead exemption, a Chapter 7 trustee could sell your home, pay you the exempt amount, and distribute the surplus to creditors. In this situation, Chapter 13 may be a better option — it allows you to keep your home while repaying creditors over 3–5 years, as long as your plan pays unsecured creditors at least what they would have received in Chapter 7.

Under the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA), debtors who acquired their homestead within 1,215 days (about 3.3 years) before filing are limited to a $201,050 homestead exemption regardless of state law. This federal cap prevents debtors from moving to states with generous homestead exemptions shortly before filing.

Additionally, if a debtor has been convicted of securities violations or certain felonies, the homestead exemption may be further limited.

Alaska allows a motor vehicle exemption of $4,800. This protects equity in your vehicle — not the vehicle's full value.

If you owe $15,000 on a car worth $20,000, your equity is $5,000. If your vehicle equity is within the exemption amount, you keep the car.

If it exceeds the exemption, the trustee may sell the vehicle, pay off the loan, pay you the exempt amount, and distribute the rest to creditors.

For personal property, Alaska provides the following protections: $4,050 household goods; $1,625 jewelry. These exemptions cover essential household items such as furniture, appliances, clothing, and similar necessities.

In practice, Chapter 7 trustees rarely seize ordinary household goods because the cost of seizure and sale typically exceeds the resale value. However, high-value items like art collections, antiques, or designer goods may attract trustee attention.

Tools of the trade — equipment, instruments, and supplies needed for your occupation — are protected up to $4,050 in Alaska. This exemption is critical for self-employed individuals, tradespeople, and professionals whose livelihood depends on specialized equipment.

The exemption typically covers hand tools, machinery, professional libraries, office equipment, and similar items directly used in your work.

Alaska does not provide a general wildcard exemption. This means every asset must fit within a specific exemption category to be protected.

Debtors in Alaska must plan more carefully to ensure all property is covered by the applicable category-specific exemptions.

Because Alaska allows debtors to choose federal exemptions, you have additional flexibility. The federal wildcard exemption is $1,475 plus up to $13,950 of any unused portion of the federal homestead exemption — potentially creating a wildcard of up to $15,425.

For renters or debtors with little home equity, the federal exemption set often provides significantly more protection than state exemptions.

Married couples filing jointly may be able to double exemption amounts (called "stacking") depending on Alaska law. In some states, each spouse can claim the full exemption amount, effectively doubling protection.

In others, the exemption amounts are per-household rather than per-person. A bankruptcy attorney can advise whether doubling is available for your specific situation in Alaska.

Retirement accounts receive strong protection in Alaska bankruptcy cases. ERISA-qualified plans — including 401(k), 403(b), profit-sharing plans, and defined benefit pensions — are fully exempt from creditor claims under both federal and state law with no dollar cap.

This is one of the most powerful protections available to bankruptcy filers.

Traditional and Roth IRAs are exempt up to $1,711,975 (as of 2024, adjusted every 3 years) under 11 U.S.C. §522(n).

This federal cap applies regardless of state exemption choices. SEP-IRAs and SIMPLE IRAs that receive only employer contributions are treated like ERISA plans and receive unlimited protection.

Inherited IRAs, however, are NOT protected in bankruptcy following the Supreme Court's decision in Clark v. Rameker (2014).

Wage protection in Alaska: Exempt: the greater of $743/week or 75% of weekly disposable earnings. This exemption protects your paycheck from garnishment by the bankruptcy trustee and general creditors.

The wage exemption typically applies to earned but unpaid wages, meaning money you have already earned but not yet received. Once wages are deposited into a bank account, they may lose their exempt status unless you can trace them.

Public benefits are also protected: Unemployment, workers' comp, Alaska Permanent Fund dividends, Social Security exempt.

Pre-bankruptcy planning in Alaska involves legally structuring your assets to maximize the protection offered by available exemptions. Because Alaska allows you to choose between state and federal exemptions, the first critical decision is which set provides better overall coverage.

Renters and debtors without significant home equity often benefit from federal exemptions due to the larger wildcard. Homeowners with substantial equity may benefit from state exemptions if the state homestead exceeds the federal amount.

Common legitimate pre-bankruptcy strategies include: paying down a mortgage to increase protected home equity (where the homestead exemption allows it), contributing to retirement accounts (which are fully protected), converting non-exempt assets to exempt forms (such as using cash to prepay exempt insurance policies), and repairing or maintaining exempt property like your vehicle or home. These conversions must be done in good faith and well in advance of filing.

Courts scrutinize large asset conversions made shortly before bankruptcy as potential fraud.

Timing matters significantly. Federal law imposes a means test for Chapter 7 eligibility, and income is measured over the 6 months before filing.

Strategic timing of your filing date can affect which income months are counted, whether seasonal bonuses push you over the means test threshold, and how tax reimbursements are treated. Consulting with a Alaska bankruptcy attorney 3–6 months before filing allows time to implement legitimate planning strategies.

Bankruptcy exemptions are one piece of a larger financial picture. The Alaska Chapter 7 Means Test Calculator determines whether your income qualifies you for Chapter 7 discharge.

If you don't qualify for Chapter 7, the Alaska Chapter 13 Payment Plan Calculator estimates your monthly repayment plan. And if your home equity is at stake, the Alaska Homestead Exemption Calculator breaks down exactly how much equity is protected under Alaska law.