New Hampshire Bankruptcy Exemptions and Law

If you live in New Hampshire and are drowning in debt, bankruptcy can protect you from creditors. Filing for bankruptcy offers you the option of either ridding yourself of overwhelming debt or getting a fresh start through a repayment plan. For those worried about losing their assets in bankruptcy, New Hampshire has state laws that can help protect some of the things that really matter.

New Hampshire Bankruptcy Law

The U.S. Bankruptcy Code governs all bankruptcy cases, regardless of where they are filed. However, states can offer debtors more protection than federal bankruptcy laws provide.

Every state offers debtors bankruptcy exemptions they can use to protect their assets in a Chapter 7 or Chapter 13 bankruptcy case. Compared to other states, New Hampshire’s exemptions are generous. For example, New Hampshire law allows you to protect up to $550,000 of the equity in your home, depending on whether you file an individual or joint bankruptcy.

In addition to the homestead exemption, New Hampshire law provides debtors with other bankruptcy exemptions that help protect real estate and personal property. The automatic stay in bankruptcy also prohibits your creditors from taking action against you.

This article examines and explains New Hampshire’s bankruptcy laws, including the state bankruptcy exemptions. It also shows how to claim these exemptions and protect your property. If you’re considering filing bankruptcy, consider speaking with an experienced bankruptcy attorney in New Hampshire.

New Hampshire Is a Dual Choice State

Just as there are state bankruptcy exemptions, there are also federal exemptions. In about half the states (dual-choice states), debtors can choose between the federal exemptions and their state’s exemptions. In the other states (opt-out states), people are limited to their state bankruptcy exemptions.

New Hampshire is a dual-choice state, which means you can choose between the federal exemptions provided in the Bankruptcy Code and the New Hampshire state exemptions. If you’re unsure of which option to choose, a New Hampshire bankruptcy lawyer can help you decide which set of exemptions is better for your financial situation.

The exemption system you choose will depend on several factors, such as:

• Whether you own your own home
• How much equity you have in your real estate and other assets
• Whether you file Chapter 7 or Chapter 13
• The total number and value of your assets

You can choose only one option. You’ll indicate your choice on the Schedule C part of your bankruptcy forms.

Types of Bankruptcy in New Hampshire

The exemptions you decide to claim in your bankruptcy depend on the type of bankruptcy you plan on filing. Under the U.S. Bankruptcy Code, there are two main types of personal bankruptcy: Chapter 7 and Chapter 13.

A Chapter 7 bankruptcy is ideal for people looking to eliminate their debt through liquidation. Chapter 7 bankruptcy cases are often resolved within four to six months. Once your case is completed, the bankruptcy judge will discharge most, if not all, of your debts. You can then begin rebuilding your credit, which will take years.

In a Chapter 13 bankruptcy case, you’ll address your financial liabilities by paying off most, if not all, of them. A bankruptcy trustee approves and manages a three-to-five-year repayment plan. You’ll make monthly payments to your Chapter 13 trustee, who distributes the money to your secured and unsecured creditors.

How Do Chapter 7 Bankruptcy Cases Work?

To file Chapter 7 bankruptcy, you must meet certain criteria. Unlike a Chapter 13 case, you’ll need to prove you can’t afford a repayment plan by passing a “Means Test.” According to the Means Test, you must earn less than your state’s median income to qualify for Chapter 7 bankruptcy. The median household incomes for New Hampshire for 2026 are as follows:

• One-person household: $87,287
• Two-person household: $109,324
• Three-person household: $141,531
• Four-person household: $155,203

If your household income falls below the above threshold(s), you can file for Chapter 7. Filing requires the correct bankruptcy forms and paying the requisite filing fee of $338. If you can’t afford the fee, you can request a fee waiver from the court or ask to pay the fee in four equal installments.

Once you file your bankruptcy petition, the trustee will review your paperwork and notify your creditors of the bankruptcy filing. An automatic stay against collections also goes into place. As long as the trustee approves your petition and none of your creditors file an objection during the 341 Meeting of Creditors, the judge will finalize your case and discharge your debts.

There may be non-dischargeable debts that you’ll still owe after the conclusion of your bankruptcy case. Your New Hampshire bankruptcy attorney can help explain which of your debts are dischargeable and which are not.

Chapter 13 Bankruptcy Cases Have Strict Eligibility Requirements

Qualifying for Chapter 13 is more difficult than qualifying for a Chapter 7 liquidation bankruptcy. If the trustee accepts your Chapter 13 bankruptcy petition, they will negotiate a three-to-five-year repayment plan, depending on your income level and total debt.

You must meet the following criteria to file a Chapter 13 bankruptcy petition in New Hampshire:

• You must earn a sufficient regular income to make payments during your Chapter 13 plan
• Your total debt must fall below the federal limits, which are:
  • Unsecured debt: $526,700
  • Secured debt: $1,580,125
• You must provide proof that you completed a credit counseling class and financial management course within 180 days of your petition
• You can’t have a dismissed bankruptcy in the past 180 days

As long as you meet these criteria and submit the required bankruptcy forms and accompanying documentation, the trustee should accept your petition. In a Chapter 13 case, you must also provide the trustee with a proposed repayment plan.

The bankruptcy process can be difficult to navigate, especially if you have a lot of debts and assets. There’s no shame in seeking legal advice from an experienced bankruptcy lawyer in New Hampshire before you file your petition. They’ll ensure that you file the right type of bankruptcy and submit all the necessary forms.

The Automatic Stay in Bankruptcy

The moment the bankruptcy court accepts your petition, it notifies your creditors. This activates the “Automatic Stay,” a bankruptcy mechanism that prohibits creditors from taking adverse action against the debtor.

Some of the types of collection activity the automatic stay prohibits include:

• Wage garnishments
• Bank account levies
• Civil lawsuits
• Foreclosure
• Repossession
• Eviction
• Sheriff’s sale

It also bans creditors from contacting you through endless phone calls. If you hire a New Hampshire bankruptcy attorney, let them know if any creditors have been harassing you. Once you’re represented by a lawyer, your creditors (and the trustee) are not allowed to contact you directly. They must go through your attorney.

Secured vs. Unsecured Debt

When you file bankruptcy, the court will categorize your debts as either secured or unsecured. Secured debts are collateralized by property. For example, a mortgage or car loan is a secured debt. Either can be seized to pay creditors.

Unsecured debts are not tied to collateral. Common examples of unsecured debt include:

• Credit card debt
• Medical bills
• Utility bills
• Personal loans
• Payday loans

In a Chapter 7 case, the court often discharges most of your unsecured debts. Secured debts are a little trickier and not often dismissed. You can reaffirm the debt and continue making payments to the lender, or voluntarily surrender the collateral, be it real estate or a motor vehicle. There are some debts that the bankruptcy court will not discharge, regardless of what chapter you file.

Some examples of non-dischargeable debts include:

• Student loans
• Alimony
• Child support
• Recent tax debts
• Criminal restitution
• Debts arising from fraud or criminal conduct
• Personal injury judgments from cases involving a DUI

There are rare instances where the bankruptcy judge will discharge your student loans. It requires proving substantial financial hardship. To be blunt, don’t count on it happening.

New Hampshire Bankruptcy Exemptions

It depends on your case, but not all who file bankruptcy lose their home. The bankruptcy trustee can force a sale of your home, but it’s not the default. New Hampshire offers bankruptcy filers exemptions to protect their property.

One of the most important is the homestead exemption, which protects the equity in your principal residence. Other exemptions cover certain non-exempt property as well.

New Hampshire state exemptions are often more advantageous than the federal protections. A New Hampshire bankruptcy attorney can explain how the two sets of exemptions apply to your case and help you pick the best option.

Homestead Exemption

According to New Hampshire law, debtors can protect up to $400,000 (single filer) or $550,000 (married couple/co-owners) of the equity in their principal residence. This is compared to just $31,575 (single filer) or $63,150 (married couple) under federal law.

Prior to January 1, 2026, the homestead exemption in New Hampshire was $120,000 ($240,000 for married couples). Lawmakers increased it to $400,000 for individual filers and $550,000 for married couples.

To qualify for the New Hampshire homestead exemption, you must meet the following criteria:

• The property must be your primary residence
• You must have lived in-state for at least 730 days (two years)
• You must have owned your home for at least 1,215 days to claim the full exemption amount or be forced to use the federal cap of $214,000.

A New Hampshire bankruptcy lawyer will undoubtedly bring these options up when they review your bankruptcy case.

Personal Property Exemptions

In addition to the homestead exemption, New Hampshire offers bankruptcy exemptions for personal property. Common personal property exemptions available in New Hampshire include:

• Motor vehicle: $10,000
• Household furniture and other goods: $3,500
• Jewelry: $500 (In a joint petition, each spouse can exempt up to $500 in jewelry)
• Tools of the trade: $5,000
• Wildcard exemption: Up to $8,000

You can find the specific exemption amounts for all of the above (and others not listed here) in the New Hampshire Revised Statutes.

The wildcard exemption in New Hampshire allows you to exempt up to $1,000 of the equity you have in any piece of property. In addition, you can apply up to $7,000 of the unused portion of your personal property exemptions.

Exempt Property in New Hampshire

Some items are also 100% exempt, regardless of value. These include, but are not limited to the following:

• Clothing
• Beds and beddings
• Home health aids
• A pew in a place of worship and a burial plot
• Livestock
• Tax-exempt retirement accounts such as 401(k)s, IRAs, and defined benefit plans
• Public employee, police officer, and firefighter benefits
• Social Security benefits
• Unemployment compensation
• Workers’ compensation

Other items and income sources may qualify as well.

What To Do Before You File Bankruptcy in New Hampshire

You’re required to complete a mandatory credit counseling course within 180 days of filing bankruptcy. The course is designed to help you assess whether you can pay your debts outside of bankruptcy.

If you plan to file a Chapter 13 case, you must provide the trustee with a proposed three-to-five-year repayment plan. The trustee will review your finances, focusing on your disposable income, and either approve or reject your plan.

Gather all your financial information and documentation before you go to the courthouse. Without it, a trustee will dismiss your case. You’ll need to refile, which may entail paying the fee again. Certain documentation is required with your bankruptcy forms and petition.

When you file a Chapter 7 or Chapter 13 bankruptcy petition, make sure you include the following:

• Your recent tax returns (two years of returns for a Chapter 7 and four years’ worth for a Chapter 13)
• All required bankruptcy forms, including your schedules
• A list of your debts and assets
• Proof of home ownership
• Credit counseling certificate
• Statement of financial affairs
• List of creditors
• Means test forms
• Statement of social security number
• Disclosure of attorney compensation
• Statement of intention
• Six months of pay stubs
• Bank statements
• Vehicle titles and registration
• Any pending lawsuits or judgments

Filing a bankruptcy case is not a simple affair. Hiring a bankruptcy attorney from a local New Hampshire law office can save money and headaches.

Costs To File Bankruptcy in New Hampshire?

It costs $338 to file for Chapter 7 bankruptcy in New Hampshire and $313 to file Chapter 13, due when you file. If you can’t afford the filing fee, you can request a fee waiver or ask to pay the fee in four equal installments. To qualify for a fee waiver, your income must fall below 150% of the poverty line.

Most people who file for bankruptcy choose to be represented by a lawyer. While every bankruptcy case is unique, most New Hampshire bankruptcy lawyers charge between $1,200 and $1,500 for a fairly straightforward Chapter 7 case. Since Chapter 13 cases are usually more complex, most attorneys will charge more to represent you in those cases.

Disclaimer: State laws are subject to change through new legislation, higher court rulings, and other means. While FindLaw strives to provide the most current information, consult a local bankruptcy attorney to verify the state law(s) you are researching.

Need Help Filing for Bankruptcy in New Hampshire?

If you’re having trouble paying your bills, hiring an attorney to represent you in bankruptcy may seem like an expensive luxury. Even simple bankruptcy cases can involve complex court filings and strict deadlines. An experienced local bankruptcy attorney will help guide you through the process, represent you in court, and negotiate with your creditors to ensure you retain as many of your assets as the law allows.