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California Exemptions

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.

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