Bankruptcy Exemptions for California
Whether you're filing a chapter
7 bankruptcy or a chapter 13 bankruptcy, you are allowed to keep
some of your possessions. The part of Calilfornia state law that
allows this is called "exemptions." These
vary from state to state, so you want to make sure you're using
California bankruptcy exemptions if this is what would apply to you..
There are two "schemes" (and
we mean this in a good way) that a debtor can use when filing in
California.
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AVBankruptcy.com |
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Scheme 1 |
Scheme 2 |
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Homestead: real
prop to...
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$50,000 if single;
double if married |
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$75,000 for families
(if others who live there have no or only CP interest
in homestead) |
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$125,000 if over 65
years old |
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$125,000 if over 55
years old and a) single and earn less than $15,000/year
or b) married and earn less than $20,000/year |
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$125,000 if mentally/phys
disabled |
Stuff
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appliances, clothing
and food |
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burial plot |
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health aids |
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Soc Sec bank deposits |
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building materials
up to $2,000 to build/improve |
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jewelry and heirlooms
up to $5,000 |
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motor vehicles up
to $1,900 - more if commercial |
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wrongful death causes
of action or recoveries |
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personal injury causes
of action or recoveries |
Insurance
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Disability or health
benefits |
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homeowner's insurance
money for 6 months |
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life insurance money
if it says it can't be used to pay your creditors |
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life insurance - a)
matured: needed for support or b) unmatured: loan
value to $4,000 |
Pensions
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County employees,
police or firefighters |
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Private retirements,
including IRAs and Keoghs |
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Public employees and
retirement benefits |
Public Benefits
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Financial aid to students |
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Relocation benefits |
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Unemployment benefits |
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Union benefits if
labor dispute |
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Workers compensation |
Tools of Trade
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up to $5,000 total |
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double if used by
both spouses used it |
Misc
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Business or professional
licenses (not liquor) |
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Property of business
partnership |
Wages
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75% of wages paid
within 30 days of filing |
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public employees:
vacation credits (if getting them at least 75%) |
Wildcard - No |
Homestead
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Real or personal property
used as residence to $17,425 |
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Unused portion of this can
be used for any property |
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not as fancy as other system |
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more bullets over there |
Stuff
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Household items up to $450
each item |
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furnishings |
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books |
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clothing |
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burial plot up to $7,500 (in
place of homestead) |
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health aids |
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jewelry up to $1,150 |
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motor vehicle up to $2,775 |
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personal injury recoveries
up to $7,500 (not including pain and suffering) |
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wrongful death recoveries
used for support |
Insurance
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Disability benefits |
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Health aids for debtor or
dependent |
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life insurance proceeds |
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unmatured life insurance (details
apply) |
Pensions
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ERISA-qualified benefits needed
for support |
Public Benefits
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Crime victim compensation |
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public assistance |
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social security |
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unemployment |
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veterans' benefits |
Tools of Trade
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up to $1,750 |
Misc:
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alimony needed for support |
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stock bonus, pension or other
fund for support |
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custody needed for support |
Wages - NO
Wildcard
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$450 of any property |
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unused portion of homestead
or burial |
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704 California
Code of Civil Proc CCP |
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As you can see, the two systems
are different. You want to be really careful when choosing them.
Which is why you'll want a skilled Palmdale bankruptcy
attorney to help you with California bankruptcy
exemptions.
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