What are the exemptions of personal property in a California Chapter 7 bankruptcy?

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Question:

What are the exemptions of personal property in a California Chapter 7 bankruptcy?

Answer:

If you have property Chapter 7 bankruptcy California exemptions can help to protect it. Exemptions are specific laws that outline the specific types and amounts of property that will be protected if you file bankruptcy. The laws are in place to protect bankruptcy filers to ensure they have the means to start a financially strong future after their bankruptcy. However, it is important to know what types of property are protected under this law.

California Personal Property Exemptions

The following are the types of personal property protected under System 1 of the California bankruptcy code.

  • Most appliances, clothing, food and furnishings
  • Bank deposits from Social Security up to $2000
  • Building materials up to $2000 to repair or improve a home
  • Burial plots
  • Jewelry, art and heirlooms valued at no more than $5000 in total
  • Vehicles with a value under $1900
  • Personal injury and wrongful death injury compensation

California also has a second option, System 2. Under that option, the following personal exemptions are available to protect your property:

  • Animals, crops, household goods, appliances and clothing up to $450 in value per item
  • Health aids
  • Burial plot of no more than $17,425 in value
  • Jewelry up to a value of $1150
  • Moto vehicle with $2775 in equity
  • Personal injury recoveries under $17,425

This is in addition to other exemptions including tools of the trade and homestead exemptions.

Hire an Attorney

Prior to filing bankruptcy, hire an attorney. The attorney will work closely with you to determine what property may be protected and how to do so under the state’s bankruptcy laws.

This article is provided for informational purposes only. If you need legal advice or representation,
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This site does not provide legal advice and users of this site should not interpret any of the information presented here as legal advice. The information provided merely conveys general information related to commonly asked legal questions. We are not a law firm and the employees responding to questions are not acting as your legal attorney. You should ultimately consult with a lawyer for your case.

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