California Bankruptcy Exemptions – Asset Protection
Asset Protection as it pertains to bankruptcy revolves around the assets that you are allowed to keep. The assets you keep in bankruptcy will depend on which state exemptions you qualify for. For example, if you have resided in California for 2-years before filing, you will use California exemptions. Below is an explanation of some of the protections under the California exemptions: You can choose from one of the following protections:(Section 704 or 703)
California Bankruptcy Exemptions – Section 704 protection:
- Home-Allows to protect $50,000 in equity in your home for a single person, $75,000 for families or head of household, or $150,000 if you are 65 years or older, or physically or mentally disabled.
- Vehicle-Allows you to protect up to $2550 in the value of any number of vehicles.
- Jewelry-Allows you to protect Jewelry, heirlooms and works of art up to $6750
- Household Goods-Household furnishings, clothes, and appliances that are reasonably necessary.
- California Bankruptcy Exemptions Code Section 704
California Bankruptcy Exemptions – Section 703 protections:
- Homestead Exemption – Allows you to protect up to $20,725 in equity, in any home you live in.
- Wildcard – Up to $1,100 in any property you own, plus you can use any unused portion of the homestead protection as a wildcard. This means that if you have no home or equity in your home, you can use the $20,725 from the homestead to protect any asset or property you own. Your total wildcard can equal $21,825, where there is no equity in your home or you do not own a home.
- Household Goods and Furnishings- You are allowed to protect and keep any item of household goods, clothes, furniture not exceeding $525 in value in any particular item.
- Jewelry – You are allowed to protect up to $1,350 in jewelry value.
- Motor Vehicle – You are allowed to protect and keep up to $3,300 for one vehicle. Where your vehicle is worth more than $3,300, you can many times use your wildcard protection to protect the remainder of the vehicle value.
- California Bankruptcy Exemption Code Section 703
The founder of Southern California Law Advocates (SCLA), Orange County bankruptcy attorney Norma Duenas, is an experienced bankruptcy attorney who graduated from the University of San Diego Law School, Cum Laude. Ms. Duenas has handled hundreds and hundreds of Chapter 7 and Chapter 13 bankruptcy cases – simple and complex.
Attorney Norma Duenas will make time to sit down with you personally if you call and schedule a free and confidential consultation.