"What Can I Keep if I File for Bankruptcy in California?"
Under bankruptcy law, there is property you can keep if you file for Chapter 7 bankruptcy and property you cannot keep. The property that is exempt varies from state to state.
To find out how the bankruptcy exemptions apply in your situation, it is important to talk with an experienced California bankruptcy attorney. At Bankruptcy Law Group, PC, our lawyers have extensive experience handling bankruptcies in California and can advise you on what property you can and cannot keep if you choose to file.
Contact us today to discuss your debt relief options. Our California bankruptcy lawyers are here to help.
State Exemptions
In California, there are two sets of bankruptcy exemptions. If you file for bankruptcy, you must choose one of the two.
System 1:
Homeowners with equity generally prefer system one. While not an exhaustive list of the exemptions under system one, here are some of the highlights:
- Homestead exemption: $75,000 if single and not disabled; $100,000 if married; $175,000 if you are 65 or older, or disabled.
- Motor vehicle up to $2,750
- Food, clothing, appliances and clothing
- Jewelry and heirlooms up to $7175
- Health aids
- Pensions
- Retirement benefits including IRA and 401(k) holdings
System 2
Features of system two include:
- Homestead (sometimes referred to as the "wildcard") exemption: Property, real or personal, used as a residence valued up to $23,250
- Motor vehicles valued up to $3,525
- All funds for child support and alimony are exempt
- There is no wage exemption
The exemptions, by law, change periodically. To fully understand how the California bankruptcy exemptions will affect you, our attorneys will need to work with you personally and conduct a thorough examination of your situation. We will put our skill and experience to work to help you choose the system that is right for you and to help you achieve your debt relief goals.
Schedule Your Free Consultation
If you need help with the bankruptcy process or have questions about California bankruptcy exemptions, we are here for you. Contact us today to schedule a free debt relief consultation with one of our experienced California bankruptcy attorneys. We hold regular office hours and are available evenings and weekends by appointment. We have law offices in Sacramento, Fairfield, Redding and Reno, Nevada.
