What are the exemptions for Chapter 7 in California?
California Bankrupty Exemptions
| Type of exemption | California System 1 (704) |
|---|---|
| Homestead | $75,000-$175,000 |
| Personal property | $8,000 in tools of the trade; $8,000 in jewelry, heirlooms, and art; $3,200 in Social Security bank deposits; plus household items and medical aids |
| Vehicle | $3,050 |
How much cash can you keep when filing Chapter 7 California?
If you declare bankruptcy, will you lose literally every dollar that you have in your savings? The answer is no: some cash can be exempted in a Chapter 7 case. For example, typically under Federal exemptions, you can have approximately $20,000.00 cash on hand or in the bank on the day you file bankruptcy.
What is the wildcard exemption in California?
Wild Card Exemption Under Section 703, this exemption allows you to exempt up to $1,280 in any item that you would like to keep in the bankruptcy. The wildcard exemption is increased when you don’t use the homestead protection in order to protect the equity in your home.
Can creditors take your house in California?
If you do not pay the judgment, the judgment creditor can garnish or “seize” your property. The judgment creditor can get an order that tells the Sheriff to take your personal property, like the money in your bank account or your car, to pay the judgment.
What assets can be taken in Chapter 7?
Property That Is Exempt
- Motor vehicles, up to a certain value.
- Reasonably necessary clothing.
- Reasonably necessary household goods and furnishings.
- Household appliances.
- Jewelry, up to a certain value.
- Pensions.
- A portion of equity in the debtor’s home.
- Tools of the debtor’s trade or profession, up to a certain value.
What funds are exempt from garnishment in California?
In California, 75% of a debtor’s income is exempt from wage garnishment. for collection. also applicable under the provision of a court order. Employment income, real property, and bank accounts are the most common assets pursued by judgment creditors, but other assets are legally available for collection.
Can I keep my car if I file Chapter 7 in California?
If the applicable California bankruptcy motor vehicle exemption is equal to or greater than the replacement value of your car, you will most likely be allowed to keep your car. On the other hand, if the applicable exemption is much less than the value of your car, the trustee will most probably proceed with selling it.
What are nonexempt assets in Chapter 7?
Nonexempt assets are those that can be sold by the trustee assigned to your case by a bankruptcy court. In a Chapter 7 bankruptcy, the proceeds from the sale of these assets are used to pay off, or partially pay off, some or all of your creditors.
What are the California Bankruptcy exemptions?
The exemptions in California’s 703 series, along with those from seven other states, apply only in bankruptcy. You can’t use them against judgment creditors that try to take your property in other situations. Several courts have ruled that bankruptcy-only exemption schemes are unconstitutional.
Which exemptions should I use in California?
In California, you must use state exemptions. However, you’ll still be able to select the exemption set that works best for you. California is the only state with two state exemption systems. Generally, debtors with substantial home equity prefer System 1 (referred to as “704” exemptions after the applicable civil procedure code section).
Who are California’s 703 exemptions best for?
Our Exemption Analysis. California’s 703 exemptions work best for people who don’t own a home or have little to no home equity.
What is California’s system 2 exemption?
California’s System 2 (also known as § 703.140(b) exemptions) only applies in bankruptcy (they can’t be used to protect your property against creditors outside of bankruptcy).