You can protect certain assets from being liquidated during your bankruptcy however you must properly elect your bankruptcy exemptions or they are waived. Moreover, you should be able to prove each bankruptcy exemption as each debtor is subject to the trustee’s audit and potentially an additional audit. Below is a general list of Bankruptcy exemptions including homestead exemptions (updated as of April 2010) available for certain California Residents. You elect from one of two systems of exemptions, either System 1 or System 2. Note you can only choose one system or the other; you cannot mix and match exemptions from different systems. Call us today for a free consultation or fill out our free online evaluation and we’ll help you through this process.
Bankruptcy Exemptions Including Personal Property, Tools of the Trade, 401k, IRA, Pensions, Public Benefits, Insurance, Wage and More Bankruptcy Advice
CALIFORNIA BANKRUPTCY SYSTEM I: CCP 704
| Exemption | Limit | Statute: CCP § 704 or otherwise stated | ||
| HOMESTEAD: | ||||
| Automatic homestead (single) | 75,000.00 | 704.730 | ||
| Automatic homestead (debtor’s spouse w/ CP interest or a minor dependent living in residence) | 100,000.00 | 704.730 | ||
| Automatic homestead (debtor is a senior, disabled, or 55 years of age or older & limited income) | 175,000.00 | 704.730 | ||
| Declared homestead (single) | 50,000.00 | 704.950 | ||
| Declared homestead (debtor’s spouse w/ CP interest or a minor dependent living in residence) | 75,000.00 | 704.950 | ||
| Declared homestead (debtor is a senior, disabled, or 55 years of age & limited income) | 150,000.00 | 704.950 | ||
| PERSONAL PROPERTY: | ||||
| Cemetery and burial plots | No limit | 704.200 | ||
| Health aids | 100% | 704.050 | ||
| Household items and personal effects | 704.020 | |||
| Jewelry, heirlooms and works of art | 7,175.00 | 704.040 | ||
| Motor vehicle (one) | 2,725.00 | 704.010 | ||
| Personal injury compensation | Amt Nec. for Support | 704.140 | ||
| Wrongful death compensation | Amt Nec. for Support | 704.150 | ||
| INSURANCE: | ||||
| Private disability & health insurance benefits | 100% | 704.130 | ||
| Life insurance policies (unmatured) | 11,475.00 | 704.100 | ||
| Life insurance proceeds | Amt Nec. for Support | 704.100 | ||
| Military Exemptions | Contact office | |||
| PENSIONS: | ||||
| ERISA-qualified benefits | Amt Nec. for Support | 29 U.S.C.A. § 1056(d) | ||
| Private retirement plan and benefits (401k, Keoghs, Traditional & Roth IRAs) | All 401ks, Keoghs, IRAs up to 1.095MM | 704.115(a)(1) & (2), (b);
11 U.S.C. § 522(b)(3)(C) |
||
| Self employed retirement plans (Keogh, SEP-IRA, IRA, | Amt Nec. for Support | 704.115(a)(3),(b),(e) | ||
| Public retirement benefits | All | 704.110, 704.170 | ||
| County employees, County firefighters, County law enforcement, Public employees | All | Gov’t 31452, Gov’t 32210, Gov’t 31913, Gov’t 21201 | ||
| Union benefits from labor disputes | All | 704.160 | ||
| PUBLIC ASSISTANCE: | ||||
| Disability benefits, Unemployment benefits | All | 704.120 | ||
| Disability, AFDC, blind | All | 704.170 | ||
| Public aid | All | Cal. Wel. & Inst. Code § 11002 | ||
| Public benefit payments (single payee, all if not commingled) | 1,425.00 | 704.080 | ||
| Public benefit payments (joint payees, all if not commingled) | 2,150.00 | 704.080 | ||
| Relocation benefits | 100% | 704.180 | ||
| Workers’ compensation benefits | 100% | 704.160 | ||
| Social Security payments | All if not commingled | 704.080 | ||
| Student financial aid | 100% | 704.190 | ||
| Residential building materials | 2,875.00 | 704.030 | ||
| TOOLS OF THE TRADE: | ||||
| Tools of trade. If spouse has a trade, apply separate trade exemption or double it if same trade. i.e. 14,350.00 & 9700 for vehicle exemption. Can’t overlap home veh. w/ trade veh. exemption | 7,175.00 (trade vehicle exemption limited to 4,850.00) | 704.060 | ||
| WAGES: | ||||
| Wages paid to debtor within 30 days of filing. (Lesser of 75% of disposable earnings or 30 times federal minimum wage.) | At least 75% | 704.070 | ||
| Public employee vacation credits | 100% (75% min. if receiving installment payments) | 704.113 | ||
| Wild card | None | |||
| Exemption | Limits | Statute: CCP § 703 or stated otherwise | ||
CALIFORNIA BANKRUPTCY SYSTEM II:703 EXEMPTIONS
| HOMESTEAD: | ||||
| Real property, condo, co-op, mobile home or manufactured home used as residence (or burial plot if no homestead). | 22,075.00 | 703.140(b)(1) | ||
| Alimony, Support, Maintenance | Amt Nec. For Support | 703.140(b)(10)(D) | ||
| PERSONAL PROPERTY: | ||||
| Household goods, furnishings, clothing, animals, crops, musical instruments, books electronics, etc. | Value not to exceed $550 per item. | 703.140(b)(3) | ||
| Burial plot instead of Homestead. | 22,075.00 | 703.140(b)(1) | ||
| Health aids, professionally prescribed | 100% | 703.140(b)(9) | ||
| Jewelry | 1,425.00 | 703.140(b)(4) | ||
| Personal injury compensation (does not incl. pain & suffering or compensation) | 22,075.00 | 703.140(b)(11)(D) | ||
| Motor vehicle (one) | 3,525.00 | 703.140(b)(2) | ||
| Wrongful death payments | Amt Nec. for Support | 703.140(b)(11)(B) | ||
| INSURANCE: | ||||
| Disability, illness, unemployment benefits: | 100% | 703.140(b)(10)(C) | ||
| Life insurance (term or whole) | No specified limit | 703.140(b)(7) | ||
| Life insurance (unmatured contract value, interest, dividends, loans cash or surrender value) | 11,800.00 | 703.140(b)(8) | ||
| Life insurance proceeds | Amt Nec. for Support | 703.140(b)(11)(C) | ||
| Loss of future earnings payments | Amt Nec. for Support | 703.140(b)(11)(E) | ||
| Military Exemptions | Contact our office | |||
| PENSIONS: | ||||
| Tax-exempt Retirement accounts, 401k, 403b, profit sharing and money purchased plan, SEP & Simple IRAs and defined benefit plans | Amt Nec. for Support | 703.140(b)(10)(E) | ||
| ERISA-qualified benefit | Amt Nec. for Support | 29 USCA § 1056(d) | ||
| Retirement accounts defined by Internal Revenue Code | 401ks, Trad. & Roth IRAs up to $1.095MM per person | 11 U.S.C. § 522(b)(3)(C) | ||
| PUBLIC BENEFITS: | ||||
| Social Security, Unemployment compensation, Public. Assistance, Veteran’s Benefits | 100% | 703.140(b)(10)(A), 703.140(b)(10)(B), 38 USCA § 5301(a) | ||
| Crime victims’ reparation benefits | 100% | 703.140(b)(11)(A) | ||
| TOOLS OF THE TRADE: | ||||
| Commercial Vehicle; Professional books; Implements of trade; Bus. computer. | 2,200.00 | 703.140(b)(6) | ||
| WAGES: | ||||
| Generally not exempt | ||||
| Wages earned but unpaid | 75% of earned but unpaid wages | 15 U.S.C.A. § 1673 | ||
| WILD CARD: Aggregate interest in any property, not to exceed $1,175 plus any unused amount of homestead exemption ($22,075) | 703.140(b)(5) |
The Bankruptcy Lawyers at California Bankruptcy Relief can help you today. We represent clients who seek bankruptcy advice and look to discharge debt through Chapter 7 Bankruptcy or Chapter 13 Bankruptcy. Contact Us and an experienced Riverside Bankruptcy Attorney or Orange County Bankruptcy Lawyer will evaluate your case and review your options.
What this page covers
Bankruptcy Lawyer, Bankruptcy Law Firm, Bankruptcy Filing, Bankruptcy in CA, Bankruptcy Exemptions in California, Insurance Exemption, Bankruptcy Advice, Wage Exemption, Asset Liquidation, Personal Property Exemption, Tools of the Trade Exemptions, Pension Exemptions, Public Benefits Exemptions, Bankruptcy Law Office, Bankruptcy, Bankruptcies
