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- Section 522(b) creates two exemption paths
- The 730-day domicile rule controls subsection (b)(3)(A)
- Subsection (A) includes two bodies of exemption law
- Entireties protection under subsection (B) is separate
- Retirement funds receive a separate statutory route
- Schedule C records the exemption claim
- Exemption, lien, and discharge are different concepts
- Amounts and forms change
- Sources
Key Facts
- Federal and state: 11 U.S.C. § 522(b) provides alternative exemption paths, but state opt-out law and the debtor’s statutory domicile determine whether the federal list in § 522(d) is available.
- Federal and state: Section 522(b)(3)(A) generally points to state or local exemptions and federal nonbankruptcy exemptions under a 730-day domicile rule with a 180-day fallback test.
- Federal level: Section 522(b)(3)(B) separately addresses certain interests in property held as a tenant by the entirety or joint tenant to the extent exempt from process under applicable nonbankruptcy law.
- Federal level: Section 522(b)(3)(C) protects qualifying retirement funds in accounts exempt from taxation under specified Internal Revenue Code provisions.
- Federal level: Schedule C is the official form used to claim exemptions, and a claimed exemption can be challenged through the Bankruptcy Rules.
11 U.S.C. § 522(b)(3) is a choice-of-law and exemption provision within the federal Bankruptcy Code. It helps determine which exemption rules an individual debtor may invoke to remove qualifying property from the bankruptcy estate. It does not supply one nationwide list of state exemption amounts.
An exemption protects an interest in property from estate administration to the extent allowed. It does not decide whether the debtor owns the property, whether a valid lien remains enforceable, or whether the property entered the estate in the first place.
Section 522(b) creates two exemption paths
Section 522(b)(2) permits the federal exemptions listed in § 522(d), unless applicable state law does not authorize that choice. This state “opt-out” authority means the federal list is available in some jurisdictions and unavailable in others.
Section 522(b)(3) is the alternative path. It combines applicable state or local exemptions and federal nonbankruptcy exemptions under subsection (A), qualifying entireties or joint-tenancy protection under subsection (B), and specified tax-exempt retirement funds under subsection (C).
Spouses in a joint case cannot split the two paths by having one elect § 522(b)(2) and the other elect § 522(b)(3). The statute requires a consistent election framework for the joint case.
The 730-day domicile rule controls subsection (b)(3)(A)
Section 522(b)(3)(A) generally uses the law of the place where the debtor was domiciled for the 730 days immediately before filing. Domicile is a legal concept involving a person’s fixed home and intent, not simply any temporary residence.
If the debtor was not domiciled in one state for that entire period, the statute looks to the place of domicile for the greater portion of the 180 days preceding the 730-day period. This backward-looking rule is designed to select one applicable exemption jurisdiction.
The statute also contains a safety provision: if the domicile rule makes the debtor ineligible for any exemption, the debtor may elect the federal exemptions in § 522(d). The actual result depends on the federal text and the competent jurisdiction’s current exemption and opt-out law.
Subsection (A) includes two bodies of exemption law
The subsection refers to property exempt under federal law other than § 522(d), plus state or local law applicable under the domicile rule. Federal nonbankruptcy exemptions can arise from statutes protecting particular federal benefits or categories of property.
State exemption law can address a homestead, personal property, vehicles, tools, wages, benefits, or other interests, but categories and amounts vary. A general federal explainer cannot establish the current protection for a particular state asset without that state’s primary law.
Entireties protection under subsection (B) is separate
Section 522(b)(3)(B) addresses an interest in property held as a tenant by the entirety or joint tenant immediately before the case, but only to the extent that the interest is exempt from process under applicable nonbankruptcy law.
The title label alone does not determine the outcome. Applicable property law, creditor identity, joint liability, and the nature of the tenancy can matter. This provision incorporates nonbankruptcy protection rather than creating a universal federal entireties exemption.
Retirement funds receive a separate statutory route
Section 522(b)(3)(C) covers retirement funds to the extent held in an account exempt from taxation under the Internal Revenue Code provisions named in the statute. Section 522 also contains rules concerning favorable tax determinations, certain direct transfers, and distributions.
The question is not merely whether an account is called a retirement account. The funds, account type, tax status, transfers, and statutory conditions determine whether the federal retirement-fund exemption applies.
Schedule C records the exemption claim
Official Schedule C requires a debtor to identify the property claimed as exempt, the legal basis, the value claimed exempt, and the property’s current value. The form offers the § 522(b)(2) and § 522(b)(3) pathways but does not choose between them.
Federal Rule of Bankruptcy Procedure 4003 governs exemption claims and objections. A trustee or creditor may object within the applicable deadline, and the court resolves contested legal or factual issues.
Exemption, lien, and discharge are different concepts
An exemption removes a qualifying property interest from estate administration. It does not automatically avoid a lien. Section 522(f) separately permits avoidance of specified liens that impair an exemption when its elements are met.
Discharge concerns personal liability for covered debts. Property exemption concerns estate property. A debtor can receive a discharge while a valid lien remains attached to property, and an exempt asset can remain subject to a lien.
Amounts and forms change
Federal exemption dollar amounts in § 522(d) are adjusted periodically under 11 U.S.C. § 104. The filing date and current governing text therefore matter.
A broader explanation of federal bankruptcy law can place exemptions within the estate, trustee administration, claims, and discharge. Section 522(b)(3) is the gateway; the protected property still depends on the precise exemption invoked.
