Los Angeles Bankruptcy Law in Woodland Hills CA

California Bankruptcy Exemptions

Where do I file bankruptcy?
What are bankruptcy exemptions?
Which state's exemptions apply?
What property is exempt under California law?

1. Where do I file bankruptcy?

You file bankruptcy in the state that you resided in for the six months before filing bankruptcy. If you did not live in any one state for six months before filing, you file in the state where you resided the most during the previous six-month period.

2. What are bankruptcy exemptions?

Part of your decision in deciding whether filing for bankruptcy is the best option for you is determining what you get to keep. Everyone’s first question is "Can I keep my cash, car, equity in my house, the money in my checking account?" You’ll want to know if you can keep your house, your automobile, pension and retirement funds, and personal belongings, among other assets, before you file. The things you will be able to keep are considered exempt items.

3. Which state's exemptions apply?

Generally, you apply the exemptions for the state that you lived in for the 730 days (two years) before filing. If you did not live in a single state in the previous two years you use the state where you lived the majority of the 180-day period preceding the two-year period. If the preceding renders you ineligible for any exemptions, then you are allowed to choose the federal exemptions.

4. What property is exempt under California law?

If you file in California, your bankruptcy will likely be governed by California’s exemptions. However, some exemptions are governed by federal law.

California has two systems for claiming exemptions. You must choose one of the systems; you cannot choose exemptions from both systems. The most important exemptions for each system are listed below. For a more detailed explanation, consult with a bankruptcy attorney at the Law Offices of Michael H. Raichelson:

Exemption System #1

Real Estate (the homestead exemption)

$50,000 if single
$75,000 for families (if no other family member has a homestead)
$150,000 if debtor is over 65 years old
$150,000 if debtor is over 55 years old and a) single and earning less than $15,000 per year or b) married and earning less than $20,000 per year
$150,000 if debtor is mentally or physically disabled

Exemption System # 2

Real Estate

Real or personal property used as a residence to $20,725; the unused portion of this can be used for any property

Personal Property

Appliances, furnishings, clothing and food
Burial plot
Health aids
Social Security bank deposits
Building materials up to $2,700 to repair or improve a home (husband and wife may not double amount)
Jewelry and heirlooms up to $6,750
Motor vehicles up to $2,550—more if commercial
Wrongful death causes of action or recoveries
Personal injury causes of action or recoveries

Personal Property

Animals, crops, appliances, furnishings, household goods, books, musical instruments and clothing up to $525 per item
Burial plot up to $20,725 (in place of homestead)
Health aids
Jewelry up to $1,350
Motor vehicle up to $3,300
Personal injury recoveries up to $20,775 (not including pain and suffering or pecuniary loss)
Wrongful death recoveries used for support

Insurance

Disability or health benefits
Fraternal unemployment bonds
Homeowner's insurance proceeds for 6 months, to the homestead exemption amount
Life insurance money if a clause prohibits proceeds from being used to pay a beneficiary’s creditors
Matured life insurance benefits needed for support; unmatured: loan value to $10,775

Insurance

Disability benefits
Health aids for debtor or dependent
Life insurance proceeds
Unmatured life insurance accrued avails to $11,075

Pensions

County employees, police, or firefighters
Private retirement benefits, including IRAs and Keoghs
Public retirement benefits

Pensions

ERISA-qualified benefits needed for support

Public Benefits

Aid to blind, aged, disabled, Aid to Families with Dependent Children
Financial aid to students
Relocation benefits
Unemployment benefits
Union benefits due to a labor dispute
Workers compensation

Public Benefits

Crime victim compensation
Public assistance payments
Social security payments
Unemployment compensation
Veterans' benefits

Tools of Trade

Tools of trade up to $6,750 (motor vehicle limited to $4,850); double if used by both spouses in same occupation

Tools of Trade

Up to $2,075

Miscellaneous

Business or professional licenses, except liquor licenses
Property of business partnership

Miscellaneous

Alimony needed for support
Stock bonus, pension or other fund for support
Custody needed for support

Wages

Seventy-five percent of wages paid within 30 days of bankruptcy filing
Public employees’ vacation credits (if you’re receiving installments, at least 75 percent)

Wages—not exempt

Wildcard—none

Wildcard

$1,100 of any property, plus unused portion of homestead or burial exemption

Contact the Bankruptcy Law Firm in Los Angeles at 866-912-2669 for a free consultation or use our contact form. At the Law Offices of Michael H. Raichelson, our fees are flexible, and under certain circumstances you can make payments over time.

The Law Offices of Michael H. Raichelson is a debt relief agency as defined by the United States Bankruptcy Code.

With offices in Bakersfield, Los Angeles, Santa Barbara and Ventura