California, CA Bankruptcy Exemptions

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The Essential California Bankruptcy Information Guide

California, CA Bankruptcy Exemptions

FEDERAL BANKRUPTCY EXEMPTIONS ARE NOT AVAILABLE
CALIFORNIA HAS TWO SYSTEMS; YOU MUST SELECT ONE OR THE OTHER.
All law references are to California Bankruptcy Code.

All property of the debtor at the time of the filing for bankruptcy (and certain other property to be received in the future) becomes the property of the bankruptcy estate once bankruptcy is filed. This means that the bankruptcy trustee will take control of this property for purposes of satisfying the creditors. HOWEVER, there is certain property which is either excluded or exempt which the debtor will be able to keep. Property or asset exemption are determined based upon your specific situation, personal income and the individual laws of your state.

The best way to determine which property you will be entitled to keep requires a detailed analysis of your unique and personal situation. Although the following Federal and State Bankruptcy Asset Exemption is provided for your information, we highly recommend Finding a Good Bankruptcy Attorney to help guide you through the Bankruptcy Process.

California Bankruptcy Exemptions

ASSET	EXEMPTION DESCRIPTION	LAW SECTION
HOMESTEAD	Real or personal property you occupy including mobile home, boat, stock cooperative, community apartment, planned development or condo to $50,000 if single and not disabled; $75,000 for families if no other member has a homestead (if only one spouse files, may exempt one-half of amount if home held as community property and all of amount if home held as tenants in common), $150,000 if 65 or older, or physically or mentally disabled; $150,000 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)	704.710, 704.720, 704.730 In re McFall, 112 B.R. 336 (9th Cir. B.A.P., 1990)
PERSONAL PROPERTY	Appliances, furnishings, clothing and food needed	704.020
	Bank deposits from Social Security Administration up to $2,700 for single payee ($4,050 for husband and wife payees); Bank deposits from other public benefits up to $1,350 ($2,025 for husband and wife).	704.080
	Building materials to repair or improve home up to $2,700	704.030
	Burial plot	704.200
	Health aids	704.050
	Jewelry, heirlooms and art up to $6,750 total	704.040
	Motor vehicle or insurance if vehicle lost, destroyed or damaged up to $2,550	704.010
	Personal injury and wrongful death causes of action	704.140 (a), 704.150 (a)
	Inmates trust funds up to $1,350	704.090
INSURANCE	Disability or health benefits	704.130
	Fidelity bonds	Labor 404
	Fraternal unemployment benefits	704.120
	Homeowner’s insurance proceeds for 6 months after received, to homestead exemption amount	704.720 (b)
	Life Insurance proceeds if clause prohibits proceeds from being used to pay beneficiary’s creditors	Ins. 10132, Ins. 10170, Ins. 10171
	Matured life insurance benefits needed for support of unlimited value	704.100 (c)
	Unmatured life insurance policy up to $10,775 in value	704.100 (b)
MISCELLANEOUS	Business or professional licenses	695.060
MISCELLANEOUS	Property of business partnership	Corp. 15025
PENSIONS	County employees	Gov’t 31452
	County firefighters	Gov’t 32210
	County peace officers	Gov’t 31913
	Private retirement benefits, including IRAs and Keoghs	704.115
	Public employees	Gov’t 21201
	Public retirement benefits	704.110
	Tax exempt retirement accounts. Traditional and Roth IRAs up to $1,095,000 per person.	11 U.S.C. § 522
PUBLIC BENEFITS	Aid to blind, aged, disabled, AFDC	704.170
	Financial aid to students	704.190
	Relocation benefits	704.180
	Unemployment benefits	704.120
	Union benefits due to labor dispute	704.120(b)(5)
	Workers’ compensation	704.160
TOOLS OF TRADE	Tools, implements, materials, books, uniforms, instruments, equipment, and furnishings up to $6,750, or up to $13,475 if used by both spouses in the same occupation. Commercial vehicle up to $4,850, or $9,700 if used by both spouses in the same occupation.	704.060
WAGES	75% of wages within 30 days to filing bankruptcy	704.070
WAGES	Public employees vacation credits; if receiving installments, at least 75%	704.113
SYSTEM 2 NOTE: Married couples may NOT double any exemptions (se In re Talmadge, 822 F.2d 1120 (9th Cir. 1987); In re Baldwin, 70 B.R. 612 (9th Cir. B.A.P. 1987)
ASSET	EXEMPTION	LAW SECTION
HOMESTEAD	Real or personal property, including co-op, used as a residence up to $20,725.	703.140 (b)(1)
PERSONAL PROPERTY	Clothing, household goods, appliances, furnishings, animals, books, musical instruments and crops up to $525 per item.	703.140 (b) (3)
	Burial plot upto $20,725, in lieu of homestead	703.140 (b) (1)
	Health aids	703.140 (b) (9)
	Jewelry upto $1,350	703.140 (b) (4)
	Motor vehicle to $3,300	703.140 (b)( (2)
	$15,000 of any property, less any claim for homestead or burial plot.	703.140(b)(5)
	$1,100 of any property. The unused portion of the burial or household exemption for any property.	703.140(b)(5)
	Personal injury recoveries up to $20,725 (not to include pain and suffering; pecuniary loss)	703.140 (b) (11) (D, E)
	Wrongful death recoveries needed for support	703.140 (b) (11) (B)
INSURANCE	Disability benefits	703.140 (b) (10)() (C)
	Life insurance proceeds needed for support of family	703.140 (b) (11) (C)
	Unmatured life insurance contract accrued avails to $9,300	703.140 (b) (8)
	Unmatured life insurance contract accrued interest, dividends, loan, cash or surrender value up to $11,075.	703.140 (b) (7)
MISCELLANEOUS	Alimony, child support needed for support	703.140 (b) (10) (D)
PENSIONS	ERISA-qualified benefits needed for support	703.140 (b) (10) (E)
PENSIONS	Tax exempt retirement accounts. Traditional and Roth IRAs up to $1,095,000 per person.	11 U.S.C. § 522
PUBLIC BENEFITS	Crime victim’s compensation	703.140 (b) (11) (A)
	Public Assistance	703.140 (b) (10) (A)
	Social Security	703.1400 (b) (10) (A)
	Unemployment compensation	703.140 (b) (10) (A)
	Veterans’ benefits	703.140 (b) (10) (B)
TOOLS OF TRADE	Implements, books, and tools of trade up to $2,075	703.140 (b) (6)
WAGES	NONE

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