California Bankruptcy Exemptions
The information below is for informational purposes below, it is important that you choose a law firm that is experienced in using the California bankruptcy exemptions to the maximum in order to keep as much of your property and assets as possible. Please note that how you may read the below exemptions, and how we may use them may differ, as we know what to do in order to exempt your assets, in order to allow you to file to discharge your debt, while maintaining assets that are important to you. The exemptions below are merely code.
The California bankruptcy exemptions chart, see below, details the property you can exempt or protect from creditors when you file bankruptcy in California. You may exempt any property that falls into one of the exemptions categories below, up to the dollar amount listed. You will be able to kept this exempted property after you file bankruptcy. There are certain debts which you will not be able to discharge in bankruptcy.
An exemption limit applies to any equity you have in the property. Equity is the difference between the value of the property and what is owed on the property. For example, a car valued at $5,000 with a loan of $4,500 has an equity value of only $500.
If the property is secured by a loan, such as a car or home, and you are current on the payments, the equity is covered by your exemptions, and you elect to keep making payments on the loan you generally can keep this property through the bankruptcy. If all the equity is not covered by your exemptions the trustee may elect to liquidate this asset and distribute the assets. Generally, in this case, you would be entitled to the value of your exemption in the asset as a cash payment.
Bankruptcy law allows married couples filing jointly to each claim a full set of exemptions, unless otherwise noted. To keep non-exempt property, a debtor must generally pay the trustee the value of the non-exempt property.
California Has Two Sets of Exemptions
California has two sets of exemptions. You must choose one or the other. This is exemption information as of 2013. Our attorneys have the most recent and up to date exemption information.
The information below is for informational purposes below, it is important that you choose a law firm that is experienced in using the California bankruptcy exemptions to the maximum in order to keep as much of your property and assets as possible. Please note that how you may read the below exemptions, and how we may use them may differ, as we know what to do in order to exempt your assets, in order to allow you to file to discharge your debt, while maintaining assets that are important to you. The exemptions below are from California statutes.
Application of each particular exemption may vary or be limited depending on the circumstances of your case. In some circumstances, certain exemptions listed may not apply or there may be other exemptions available not listed below.
The California bankruptcy exemptions chart, see below, details the property you can exempt or protect from creditors when you file bankruptcy in California. You may exempt any property that falls into one of the exemptions categories below, up to the dollar amount listed. You will be able to keep this exempted property after you file bankruptcy. There are certain debts which you will not be able to discharge in bankruptcy.
An exemption limit usually applies to any equity you have in the property. Equity is the difference between the value of the property and what is owed on the property. For example, a car valued at $5,000 with a loan of $4,500 has an equity value of only $500.
If the property is secured by a loan, such as a car or home, and you are current on the payments, the equity is covered by your exemptions, and you elect to keep making payments on the loan you generally can keep this property through the bankruptcy. If all the equity is not covered by your exemptions the trustee may elect to liquidate this asset and distribute the assets. Generally, in this case, you would be entitled to the value of your exemption in the asset as a cash payment.
Bankruptcy law allows married couples filing jointly to each claim a full set of exemptions, unless otherwise noted. To keep non-exempt property, a debtor must generally pay the trustee the value of the non-exempt property.
Under Bankruptcy Law, there is a domicile requirement that must be met for you to qualify to use these exemptions. A careful review by an experienced and qualified attorney is recommended to determine your qualification and the application or use of any particular exemption listed below. There may also be limitations on some of the exemptions under the Bankruptcy Code; seek legal advice to help determine whether these limitations might apply.
| SYSTEM 1 | ||
| ASSET | EXEMPTION DESCRIPTION | LAW SECTION |
| HOMESTEAD | Real or personal property you occupy including mobile home, boat, stock cooperative, community apartment, planned development or condo to $75,000 if single and not disabled; $100,000 for families if no other member has a homestead (if only one spouse files, may exempt one-half of amount if home held as community property and all of amount if home held as tenants in common), $175,000 if 65 or older, or physically or mentally disabled; $175,000 if 55 or older, single and earn under $25,000 or married and earn under $35,000 and creditors seek to force the sale of your home; sale proceeds exempt for 6 months after received (husband and wife may not double). | 704.710,704.720,704.730In re McFall, 112 B.R. 336(9th Cir. B.A.P., 1990) |
| PERSONAL PROPERTY | Appliances, furnishings, clothing and food needed | 704.020 |
| Bank deposits from Social Security Administration to $3,050 ($4,575 for husband and wife) | 704.080 | |
| Building materials to $3,050 to repair or improve home (husband and wife may not double) | 704.030 | |
| Burial plot | 704.200 | |
| Health aids | 704.050 | |
| Jewelry, heirlooms and art to $7,625 total (husband and wife may not double) | 704.040 | |
| Motor vehicles to $2,900, or $2,900 in auto insurance if vehicle(s), lost, damaged or destroyed (husband and wife may not double) | 704.010 | |
| Personal injury and wrongful death causes of action | 704.140 (a),704.150 (a) | |
| Personal injury and wrongful death recoveries needed for support; if receiving installments, at least 75% | 704.140(b), (c), (d),704.150 (b), (c) | |
| May file homestead declaration | 704.920 | |
| INSURANCE | Disability or health benefits | 704.130 |
| Fidelity bonds | Labor 404 | |
| Fraternal unemployment benefits | 704.120 | |
| Homeowner’s insurance proceeds for 6 months after received, to homestead exemption amount | 704.720 (b) | |
| Life Insurance proceeds if clause prohibits proceeds from being used to pay beneficiary’s creditors | Ins. 10132, Ins. 10170,Ins. 10171 | |
| Matured life insurance benefits needed for support | 704.100 (c) | |
| Unmatured life insurance policy loan value to $12,225 (husband and wife may double | 704.100 (b) | |
| MISCELLANEOUS | Business or professional licenses | 695.060 |
| Inmates’ trust fund to $3.050 (husband and wife may not double) | 704.090 | |
| Property of business partnership | Corp. 15025 | |
| PENSIONS | County employees | Gov’t 31452 |
| County firefighters | Gov’t 32210 | |
| County peace officers | Gov’t 31913 | |
| Private retirement benefits, including IRAs and Keoghs | 704.115 | |
| Public employees | Gov’t 21201 | |
| Public retirement benefits | 704.110 | |
| PUBLIC BENEFITS | Aid to blind, aged, disabled, AFDC | 704.170 |
| Financial aid to students | 704.190 | |
| Relocation benefits | 704.180 | |
| Unemployment benefits | 704.120 | |
| Union benefits due to labor dispute | 704.120(b)(5) | |
| Workers’ compensation | 704.160 | |
| TOOLS OF TRADE | Tools, implements, materials, instruments, uniforms, books, furnishings, equipment, vessel, motor vehicle to $7.625 total; to $15,250 total if used by both spouses in same occupation (cannot claim motor vehicle under tools of trade exemption if claimed under motor vehicle exemption) | 704.060 |
| WAGES | Minimum 75% of wages | 704.070 |
| Public employees vacation credits; if receiving installments, at least 75% | 704.113 | |
|
SYSTEM 2 |
||
| ASSET | EXEMPTION DESCRIPTION | LAW SECTION |
| HOMESTEAD | Real or personal property, including co-op, used as residence to $25,075; unused portion of homestead may be applied to any property | 703.140 (b)(1) |
| PERSONAL PROPERTY | Household furnishings, household goods, wearing apparel, appliances, books, animals, crops, or musical instruments, that are held primarily for the personal, family, or household use of the debtor or a dependent of the debtor to $600 per item | 703.140 (b) (3) |
| Burial plot to $25,075, in lieu of homestead | 703.140 (b) (1) | |
| Health aids | 703.140 (b) (9) | |
| Jewelry to $1,525 | 703.140 (b) (4) | |
| Motor vehicle to $5,100 | 703.140 (b)( (2) | |
| Personal injury recoveries to $25,575 (not to include pain and suffering; pecuniary loss) | 703.140 (b) (11) (D, E) | |
| Wrongful death recoveries needed for support | 703.140 (b) (11) (B) | |
| INSURANCE | Disability benefits | 703.140 (b) (10)() (C) |
| Life insurance proceeds needed for support of family | 703.140 (b) (11) (C) | |
| Unmatured life insurance contract accrued avails to $13,675 | 703.140 (b) (8) | |
| Unmatured life insurance policy other than credit life insurance contract | 703.140 (b) (7) | |
| MISC. | Alimony, child support needed for support | 703.140 (b) (10) (D) |
| PENSIONS | ERISA-qualified benefits needed for support | 703.140 (b) (10) (E) |
| PUBLIC BENEFITS | Crime victim’s compensation | 703.140 (b) (11) (A) |
| Public Assistance | 703.140 (b) (10) (A) | |
| Social Security | 703.1400 (b) (10) (A) | |
| Unemployment compensation | 703.140 (b) (10) (A) | |
| Veterans’ benefits | 703.140 (b) (10) (B) | |
| TOOLS OF TRADE | Implements, books, and tools of trade up to $7,575 | 703.140 (b) (6) |
| WAGES | May use the “Wildcard” exemption as needed and if available | 703.140(b)(5) |
| WILD CARD | $1,350 of any property, plus the unused portion of homestead or burial exemption, (703.140(b)(1)) | 703.140 (b) (5) |
We are experienced Sacramento Bankruptcy Attorneys. We have helped thousands of individuals and businesses get the relief they need from their creditors through the use bankruptcy by filing a Ch. 7, Ch. 13, credit card debt negotiation or debt settlement and have successfully dealt with adversary proceedings brought by difficult creditors. Our bankruptcy attorneys have achieved proven results and can give you the great legal advice and strategy needed to get you the results you want. Contact us today to schedule your complimentary attorney consultation by clicking HERE or by calling 916-999-1376. We look forward to helping you with all of your Sacramento bankruptcy needs.
