One of the greatest fears people have when they are considering filing for bankruptcy is the fear that they will lose their possessions. The truth is:
- Most people who qualify for Chapter 7 personal bankruptcy will find that all or most of their possessions are exempt from being taken by creditors and sold to repay debt.
- If you are filing for Chapter 13 bankruptcy, the bankruptcy trustee will create a debt repayment plan that restructures your debts and makes them more manageable. The debt repayment plan can help you avoid repossession, foreclosure or other loss of assets.
When you visit the law offices of Boyd Contreras LLP, our Orange County & San Diego bankruptcy exemption lawyers will review your financial situation and advise you whether you qualify for Chapter 7 or Chapter 13 bankruptcy. We will explain how the state and federal exemptions will apply to your case and will choose the method that is most beneficial in your case. Call 619-378-4033 or contact us online.
Property & Bankruptcy Exemptions
The bankruptcy code allows you to keep different kinds of property, up to a certain dollar limit in value. This is spelled out in the bankruptcy exemptions. California has two different sets of exemptions. You must choose one or the other. You can also use the federal supplemental exemptions if they are more favorable. Here are guidelines for the two exemption systems in California.
| Property Type | System 1 (§703) – Wild Card | System 2 (§704) - Standard |
| Residence | $20,725 in any real property (homestead) | (1) $75,000 if single debtor (2) $100,000 if debtor is family unit (3) $175,000 if debtor is or spouse is at least 65 years old, disabled, or if annual income is less than $15,000 or $20,000 if married |
| Wild Card | $1,100 plus unused portion of homestead, up to $21,825 to protect any asset | N/A |
| Household Furnishings and Personal Effects | $525 in each item held primarily for personal, family or household use (i.e. furniture) | Exempt to the extent reasonably necessary for the personal use of debtor or dependent at debtor's residence |
| Automobiles | $3,300 equity in one vehicle | (1) $2,300 in a personal vehicle (2) $4,850 in a business vehicle |
| Tools of Trade | $2,075 where used in the trade of the debtor or a dependent | $4,750 to the extent necessary to and actually used by the debtor in a business or trade ($13,475 when debtor and spouse are in same trade) |
| Retirement, Pension, Etc. | The right to receive payment to the extent reasonably necessary for support of debtor or dependent, unless it does not qualify under IRS Code. All 401k, 403b and IRA's are protected. | All amount held, controlled or distributed from "private retirement plan" |
| Earnings | N/A | 75% of paid earning within the last 30 days; 75% of unpaid earnings unless debtor proves that some or all of excess is necessary for support of debtor's family |
| Jewelry, Heirlooms, Art | $1,350 in jewelry only | $6,750 in jewelry, heirlooms and art |
Contact a San Diego Bankruptcy Exemption Attorney Today!
Our attorneys help clients through out Southern California including these cities and counties:
- San Diego County
- Chula Vista
- El Cajon
- La Mesa
- La Jolla
- Orange County
- Irvine
- Santa Ana
- Newport Beach
- Laguna Beach
- And More
To learn more about bankruptcy exemptions and how this applies in your case, contact the Orange County & San Diego bankruptcy exemptions lawyer at Boyd & Contreras. Call our office at 619-378-4033 to schedule a free confidential consultation or simply email us. Hay Abogado Que Habla Español
Pursuant to 11 U.S.C. section 528(a)(4) of the bankruptcy code, we are required to state: we are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
Related Content: San Diego Bankruptcy Lawyers | Chapter 7 Bankruptcy
