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Bankruptcy Exemptions in California Can Be Complicated You Are Not Alone, Contact Our Cerritos Attorney Today

CA Bankruptcy Exemptions

Counsel from a Cerritos Bankruptcy Attorney

If you are filing for bankruptcy, you may be exempt from certain property (Chapter 7) and payments to unsecured creditors (Chapter 13). While some states let you choose between federal and state exemptions, California requires that you must use state exemptions; however, there are two different sets of exemptions that you may decide between.

Bankruptcy Exemption System 1

Bankruptcy Exemptions under System 1:

  • Homestead: protects residence up to $75,000 for single persons and $100,000 for families. Older persons and disabled persons may protect more equity.
  • Motor Vehicle: exempt $2,725
  • Personal Property: any household or personal items, health aids, personal injury recoveries, burial plots, jewelry & heirlooms & art up to $7,125
  • Tools of Trade: anything that is used for an occupation up to $7,175 (single) and $14,300 (married in same trade); vehicles may also be exempt up to a certain amount
  • Bank Deposits: from Social Security up to $2,875 (single) and $4,300 (married); from public benefit payments up to $1,425 (single) and $2,150 (married)
  • Wages: 75% of wages that were made within 30 days of filing and vacation credits for public employees
  • Pensions & Retirement Funds: tax exempt retirement accounts, public retirement benefits and IRAS & Roth IRAS up to $1,171,150 .Public employees, county employees, county peace officers, and county fire fighters also have exemption for their retirement funds and pensions.
  • Public Benefits: benefits for unemployment, disability, worker's compensation, relocation, and student financial aid
  • Insurance: disability, health, life insurance, and life insurance policy up to $11,475, fidelity bonds
  • Professional License: If you have a business or professional license, then you may keep those as well.

Bankruptcy Exemption System 2

Bankruptcy Exemptions under System 2:

  • Homestead: up to $24,060 for residence
  • Motor Vehicle: up to $4,800
  • Personal Property: personal and household items up to $600 per item, burial plot up to $24,060, jewelry up to $1,425, health aids, wrongful death recoveries, personal injury recoveries up to $24,600
  • Tools of Trade: implements, tools, books of trade up to $7,175
  • Pensions & Retirement Funds: tax exempt retirement accounts, IRAs & Roth IRAs up to $1,171,150, and ERISA
  • Public Benefits: unemployment, social security, Veteran's benefits, public assistance, benefits for crime victims
  • Insurance: disability, life insurance policy (including interests, dividends, loan or cash up to $12,860)
  • Wildcard: $1,280 and any unused burial or homestead exemption in any property
  • Alimony and Child Support

Contact the Law Office of Raymond J. Seo

To find out how you can maximize your assets from these bankruptcy exemptions, get in touch with Cerritos bankruptcy attorney, Raymond J. Seo. He has over two decades of experience helping clients file for bankruptcy and obtain debt relief.

The bankruptcy code changes every few years, so be sure to talk to him before taking action! Call for your free case evaluation today!

Why Hire the Law Offices of Raymond J. Seo

  • We See Our Clients
    as People First

    We treat each client with respect and dignity and ensure the highest quality of professionalism for each individual. We see our clients as people first, not paychecks.

  • Lower Fees

    Our firm also proudly offers significantly lower fees than other large firms and direct access to the attorney working on your case.

  • Personalized Strategies

    We stay abreast of the changing bankruptcy laws and concerns so that we are always prepared because we understand that your case is unique to you.