Bankruptcy Exemptions

Bankruptcy Exemptions in California

Santa Ana Bankruptcy Lawyer

When you are filing for bankruptcy, there are certain assets that can be protected from creditors. The California government allows you to choose between two exemption systems. You are allowed to keep property that falls under the system you choose, up to the specified dollar amount. The dollar amount refers to the amount of equity in the property. If you want to keep any non-exempt property, then you must pay your bankruptcy trustee the value of the property.

Before you file for bankruptcy, obtain counsel from an Orange County bankruptcy lawyer at 1stCalifornia Law, Inc.We can review your financial situation and advise you on the best course of action during a free consultation. Call our firm today!

System 1

Below are the lists of exempt property under System 1 as stated in the California Code of Civil Procedure.

System 1 Homestead Exemptions

Any property that you occupy may be exempt up to the amount listed below:

$75,000 for single people who are not disabled
$100,000 for families
$175,000 for persons 65 and older, or disabled persons
$175,000 for persons 55 and older who earn under $15,000 if single, and earn under $20,000 if married

System 1 Personal Property Exemptions

The following items will be exempt from liquidation:

Necessary food, clothing, furnishings, and appliances
Social security deposits up to $3,650
Building materials for home improvement up to $2,875
Burial plot
Health aids
Heirlooms, art, or jewelry up to $7,175
Compensation for personal injury or wrongful death

System 1 Insurance Exemptions

The subsequent types of insurance may be exempt from creditors:

Health and disability benefits
Homeowner's insurance for up to six months
Certain life insurance
Fidelity bonds
Fraternal unemployment benefits

Other Possible System 1 Exemptions

Some pensions
Public benefits
Tools
75% of an individual's wages

System 2

The lists below are items that will be excluded under System 2, as stated in the California Code of Civil Procedure.

System 2 Homestead Exemptions

Any property used as a residence that is valued up to $17,425 is excluded.

System 2 Personal Property Exemptions

The following items may be exempt up to the dollar amount listed:

Animals, appliances, crops, books, clothing, and musical instruments up to $450 per item
Jewelry up to $1,150
Health aids
Burial plot up to $17, 425
Compensation for personal injury up to $17,425
Compensation for wrongful death that is needed for support
Motor vehicle up to $2,725
Tools of trade up to $1,750

System 2 Insurance Exemptions

Disability and certain types of life insurance are to be excluded from liquidation.

Other Possible System 2 Exemptions

Alimony
Child support
Some public benefits
$925 of any property

Counsel from a Skilled Bankruptcy Attorney

One of our Santa Ana bankruptcy lawyers can take a look at your property to see which would benefit you the most. We are available 24/7, even on weekends, because your needs are our first priority.

Trust a firm whose staff has been described as professional, knowledgeable, informative, and caring by former clients. We offer a free case evaluation for those who are interested in retaining our services! To find out which system you should choose, contact our firm.

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