California Bankruptcy Exemptions – Asset Protection
Asset Protection as it pertains to bankruptcy revolves around the assets that you are allowed to keep. The assets you keep in bankruptcy will depend on which state exemptions you qualify for. For example, if you have resided in California for 2-years before filing, you will use California exemptions. Below is an explanation of some of the protections under the California exemptions: You can choose from one of the following protections:(Section 704 or 703)
California Bankruptcy Exemptions – Section 704 protection:
- Home-Allows you to protect up to $600,000 in equity in a home. The amount of equity that you can protect is based on the median sales prices of homes in your county.
- Vehicle-Allows you to protect up to $3325 in the value of any number of vehicles.
- Jewelry-Allows you to protect Jewelry, heirlooms and works of art up to $8725
- Household Goods-Household furnishings, clothes, and appliances that are reasonably necessary.
- California Bankruptcy Exemptions Code Section 704
California Bankruptcy Exemptions – Section 703 protections:
- Homestead Exemption – Allows you to protect up to $29,725 in equity, in any home you live in.
- Wildcard – Up to $1,550 in any property you own, plus you can use any unused portion of the homestead protection as a wildcard. This means that if you have no home or equity in your home, you can use the $29,725 from the homestead to protect any asset or property you own. Your total wildcard can equal $31,275, where there is no equity in your home or you do not own a home.
- Household Goods and Furnishings- You are allowed to protect and keep any item of household goods, clothes, furniture not exceeding $525 in value in any particular item.
- Jewelry – You are allowed to protect up to $1,750 in jewelry value.
- Motor Vehicle – You are allowed to protect and keep up to $5,850 in one or more vehicles. Where your vehicle is worth more than $5,850, you can many times use your wildcard protection to protect the remainder of the vehicle value.
- California Bankruptcy Exemption Code Section 703
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