California Bankruptcy Exemptions are to protect your assets. Filing for bankruptcy protection does not mean individuals are not allowed to keep assets. California has two sets of exemptions that provide for the opportunity to protect assets based on the individual circumstance of the debtor. In the hands of an experienced bankruptcy attorney, the exemptions can be used to maximize and allow individuals to keep all their property.
Bankruptcy Homestead Exemption is available for Chapters 7 or 13.
The homestead exemption is available under both Chapters 7 and 13 and allows individuals to protect their house under the bankruptcy code. It can only apply to your current residence. It does not apply to income property unless you are living at that property as well. Your house is protected the most under California bankruptcy exemption section 704 where you can protect $75,000 to $175,000 in equity in your home depending on your circumstance.
There also exists homestead protection under California bankruptcy exemptions section 703. Which is best for you? Below you will find the table of exemptions and the amounts of equity that are protected under each exemption set. Be careful of the cautions listed here.
Research the information you need about exemptions below. If you need more help, we are here to help and advise. We can structure your bankruptcy to protect all your assets.
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California Bankruptcy Exemptions provide two different options.
California allows debtors two sets of exemptions. However, they must choose under which set of exemptions they wish to protect their assets. Different exemptions from different sections may not be taken. Debtors must choose either the 703 exemption or the 704. Caution!! There can be no mingling of exemptions.
California Bankruptcy Exemptions section 703.
California bankruptcy exemptions under section 703 are designed for none homeowners or owners who do not have much equity in their house. Section 703 exemptions allow for individuals to keep approximately $35.000.00 in different assets. So long as the total of all assets, excluding retirement account, are less that $35,000.00 the debtor will keep all their property. However, you must still structure the exemptions in the proper categories to ensure your assets are protected. The full table of exemptions under 703 is listed below.
California Bankruptcy Exemptions section 704.
California bankruptcy exemptions under section 704 are designed to protect homeowners’ equity in their house. Given the age, income, and marital status of the debtor, individuals may protect up to $600,000.00 in equity in their home. However, 704 makes it difficult to protect other assets, particularly vehicles and tax refunds. The full table of exemptions under 704 is listed below.
Caution!!! No Canceling of Chapter 7 Bankruptcy.
Once a bankruptcy is filed, all assets become the property of the estate. Individuals who file for Chapter 7 bankruptcy can not withdraw their bankruptcy petition. They can not dismiss their bankruptcy without a motion to the court explaining how they will be paying back their creditors. All assets that are not properly protected will not be saved and will be liquidated by the trustee. We can make sure all your assets are protected. You do not need to guess. Call us at 818-409-8911 to schedule a Free No obligation consultation. With our very affordable fees, you can eliminate the guessing and protect all your assets.
Caution !!! Improperly claimed exemptions under Chapter 13 can increase your monthly payments.
Under Chapter 13, you are required to pay back your creditors at the very least what they would have gotten under Chapter 7. If you fail to properly claim your exemptions, the trustee can make you pay more to ensure the above rule. As local bankruptcy attorneys, we are experienced with the local practice of the bankruptcy court and the bankruptcy trustees. We know what will be protected and what will get the bankruptcy trustee interested in liquidating. If you need more information,
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