Schedule C — Official Form 106C, "The Property You Claim as Exempt" — is the schedule that determines what you keep. Get it right and your home, vehicle, and household goods are protected. Get it wrong and the trustee can object and force you to surrender property. This is the procedural walkthrough for DC filers, including the critical choice between DC Code § 15-501 exemptions and federal § 522(d) exemptions.
Schedule C is filed with the petition. Once filed, the choice between DC and federal exemption schemes is generally binding for the duration of the case — though amendments are permitted under Bankruptcy Rule 1009(a) before the case is closed. Pick deliberately.
Step-by-Step
Step 1: Confirm DC Residency Eligibility
Under 11 U.S.C. § 522(b)(3)(A), you may use DC exemptions only if you have been domiciled in DC for at least 730 days before the filing date. If not, the state where you lived for the greater portion of the 180-day period ending 730 days before filing governs. If even that produces no clear answer, federal exemptions apply by default. Confirm your residency timeline before proceeding — the wrong exemption scheme is a common dismissable error.
Step 2: Run a Side-by-Side Comparison: DC vs. Federal
For DC filers who satisfy the 730-day rule, you choose either the DC scheme under D.C. Code § 15-501 or the federal scheme under 11 U.S.C. § 522(d). The two cannot be mixed. For homeowners with substantial equity, DC § 15-501 is usually superior because the homestead exemption is unlimited (no dollar cap) for property owned 1,215+ days. For renters or homeowners with little equity, federal § 522(d) is usually superior because the wildcard exemption — up to $17,475 — can be redirected to protect cash, tax refunds, or non-homestead assets.
Step 3: Choose the Exemption Scheme on the Form
On Schedule C, line 1, check the box indicating "11 U.S.C. § 522(b)(2)" for the DC state scheme or "11 U.S.C. § 522(b)(3)" — the federal scheme is selected by checking the corresponding option. Review the instruction page to confirm the format applicable to the case. Misidentifying the scheme is the most common Schedule C error.
Step 4: List Each Exempt Asset Individually
For each property item from Schedule A/B that you claim as exempt, complete one row on Schedule C: (a) describe the property, (b) state the current value claimed exempt, (c) cite the specific exemption statute (e.g., "D.C. Code § 15-501(a)(14)" or "11 U.S.C. § 522(d)(1)"), and (d) state whether the value claimed is a specific dollar amount or 100% of fair market value up to the statutory limit. The "100% of FMV up to applicable statutory limit" formulation under Schwab v. Reilly is the safer claim for non-cash assets where the exemption statute is at full value.
Step 5: Identify Wildcard and Specific-Use Exemptions
Both DC and federal schemes include wildcard exemptions — DC under § 15-501(a)(3) and federal under § 522(d)(5). The federal wildcard is particularly powerful: $1,475 base plus up to $13,950 of unused homestead exemption, totaling up to $15,425 (as of the most recent triennial adjustment). Wildcard can be applied to any asset and is the standard tool for protecting tax refunds, bank account balances, and cash on hand. List wildcard claims as separate rows on Schedule C with clear citation to the applicable subsection.
Step 6: Address Vehicles, Tools of Trade, and Household Goods
DC: vehicles up to $2,575 under § 15-501(a)(1); household goods unlimited within reasonable amounts under § 15-501(a)(2); tools of trade up to $1,625 under § 15-501(a)(5). Federal: vehicle up to $4,450 under § 522(d)(2); household goods up to $14,875 aggregate under § 522(d)(3); tools of trade up to $2,800 under § 522(d)(6). For each category, list the asset, the value, and the citation. If the asset value exceeds the exemption limit, the excess is non-exempt and may be administered by the trustee.
Step 7: Sign and File With the Petition
Schedule C is filed contemporaneously with the petition. The debtor must sign Schedule C under penalty of perjury — the declaration on the form expressly cross-references 28 U.S.C. § 1746. Errors discovered after filing can typically be corrected by amendment under Bankruptcy Rule 1009(a) until the case is closed, though late amendments may face trustee objection. File deliberately — not on autopilot.
Common Schedule C Errors
- Mixing DC and federal schemes. The two cannot be combined. Pick one.
- Failing to claim the wildcard. Especially for renters using the federal scheme — leaving $15,425 of available wildcard unclaimed is a costly oversight.
- Citing the wrong subsection. The trustee reads the citation. A claim under § 522(d)(1) for a vehicle (instead of § 522(d)(2)) invites an objection.
- Underestimating asset values. The Schedule A/B value should be honest current fair market value, not what you paid. Trustees challenge low valuations on motor vehicles, real estate, and collectibles.
- Missing the 1,215-day DC homestead cap. Under 11 U.S.C. § 522(p), if the property was acquired during the 1,215-day period before filing, the homestead exemption is capped at $189,050 — even under DC’s otherwise-unlimited scheme.
Frequently Asked Questions
Can I change my exemption scheme after I file?
Yes, by amendment under Bankruptcy Rule 1009(a), so long as the case is open. However, late amendments may be objected to by the trustee, especially if the change appears motivated by an asset that was discovered post-filing. Picking deliberately at filing is strongly preferred.
Do I have to use the DC scheme just because I live in DC?
No. If you satisfy the 730-day domicile rule, DC filers may choose either the DC § 15-501 scheme or the federal § 522(d) scheme. The choice is yours — not the court’s and not the trustee’s. Pick whichever scheme protects more of your property.
What happens if I claim more than the exemption allows?
The trustee will object. The court resolves the objection by ruling on the value or the legal basis of the claim. If sustained, the excess value becomes non-exempt and is administered by the trustee — typically meaning the asset is sold and the non-exempt value distributed to creditors after exemptions are paid back to you.