California Bankruptcy Exemptions - CA Bankruptcy Exemptions

These are the equity in assets you are allowed to keep in a Bankruptcy.

NEWS FLASH! On January 1, 2010 homestead exemptions rose to $75,000 and $100,000 of home equity for single and married debtors.

(Federal Exemptions Not Allowed)

California has 2 'systems' of bankruptcy exemptions.
You must choose one. Each has different exemption provisions.

California Bankruptcy Exemptions - System # 1

Real or personal Property you occupy including a mobile home, boat, stock cooperative, community apartment, planned development or condo to $75,000.00 if single and not disabled; $100,000.00 for families if no other member has a homestead; $150,000 if age 65 or older, or physically or mentally disabled; $100,000 if 55 or older, single and earn under $15,000 or married and earn under $20,000 and creditors seek to force the sale of your home; sale proceeds exempt for 6 months after received (husband and wife may not double the amount and may file a homestead declaration. D	$75,000
Insurance: Disability or health benefits Fraternal unemployment bonds Life insurance proceeds or avails if clause prohibits proceeds from being used to pay beneficiary's creditors Fidelity bonds Homeowners' insurance proceeds for 6 months after received, to homestead exemption amount Matured life insurance benefits needed for support Unmatured life insurance policy loan value to $10,775 husband and wife may double to $21,550
Pensions County employees County firefighters County peace officers Private retirement benefits, including IRA's and KEOGHS Public employees Public Retirement benefits
Miscellaneous Property of business partnership Business or professional license, except liquor licenses Inmates' trust funds to $1,350 (husband and wife may not double)
Personal Property Appliances, furnishings, clothing and food needed Bank deposits from Social Security Administration to $2,700 ($4,050 for husband and wife. Note on Social Security: Bank accounts which receive direct deposits from Social Security are exempt without making a claim if they have $2,700 or less (if one depositor is designated payee) or $4,050 (if two or more depositors are designated payees). Balances over the designated amount are completely exempt as long as traceable to Social Security. Building materials to $2,700 to repair or improve home (husband and wife may not double amount) Burial Plot Health aids Jewelry, heirlooms and art to $6,750 total (may not be doubled) Motor vehicles to $2,550 in auto insurance if vehicle(s) lost, damaged or destroyed (may not be doubled) Personal injury causes of action Personal injury recoveries needed for support; if receiving installments at least 75% Wrongful death causes of action Wrongful death recoveries needed for support; if receiving installments, at least 75%
Public Benefits Aid to blind, aged, disabled, AFDC (Aid to Families with Dependant Children) Financial Aid to Students Relocation benefits Union benefits due to labor dispute Unemployment benefits Worker's Compensation
Tools of Trade Tools, implements, materials, instruments, uniforms, books, furnishings, equipment, vessel, motor vehicle to $6,750 total (Motor vehicle limited to $4,850); to $13,475 total (Motor vehicle limited to $9,700) if used by both spouses in same occupation (cannot claim motor vehicle under both tools of trade exemption and motor vehicle exemption.
Wages Public employees vacation credits; if receiving installments, at least 75% 75% of wages paid within 30 days of filing for bankruptcy

NOTE: These are the major bankruptcy exemptions.
Check with your bankruptcy lawyer for a full exemptions list.

California Bankruptcy Exemptions - System # 2

Homestead - Unused portion of homestead may be applied to any property. D	$20,725
Insurance: Disability or health benefits Life insurance proceeds or avails needed for support Unmatured life insurance contract accrued avails to $11,075 Unmatured life insurance policy other than credit
Miscellaneous Alimony, child support needed for support
Pensions ERISA qualified benefits needed for support
Personal Property Animals, crops, appliances, furnishings, household goods, books, musical instruments and clothing to $525 per item Burial plot to $20,725, in lieu of homestead Health Aids Jewelry to $1,350 Motor vehicle to $3,300 Personal injury recoveries to $20,775 (not to include pain and suffering or pecuniary loss) Wrongful death recoveries needed for support
Public Benefits Crime victims' compensation Public Assistance Social Security Unemployment benefits Veterans' benefits
Tools of Trade	$2,075
Wild Card $1,100 of any property plus unused portion of homestead or burial exemption of any property. Total wildcard = $21,825