Bankruptcy Exemptions – Will I lose everything?
Am I going to lose everything when I file for bankruptcy? When filing for bankruptcy in California there are two separate exemption statutes to chose from – California Code of Civil Procedure (C.C.P.) sections 703 or 704. You may only choose one set of exemptions. In order to determine which set of exemptions best fits your situation, it is best to consult with your bankruptcy attorney, such as the Law Offices of Alon Darvish. Below, you will find a quick outline of the basic exemptions.
Exemptions under C.C.P. 703
- Homestead – Up to $20,725 in value of equity for your primary residence
If you don’t have that much in equity, any remaining amount can be applied to any property - Vehicles – Up to $3,300 in equity value in one vehicle
- Personal property including household items such as animals, appliances, clothes, etc. up to $525 for each item. Also jewelry and heirlooms up to $1,350.
- Tools of the trade up to $2,075 in value
- Insurance – Including disability benefits, life insurance with specific details for allowing it.
- Pensions – Some benefits and private retirement account, with details that apply.
- Public benefits – Such as unemployment, workers’ compensation, welfare, social security or veteran’s benefits.
- Alimony and child support
Exemptions under C.C.P. 704
- Homestead – There are various categories of the amount of equity allowed under this section starting with $50,000 for an individual all the way up to $125,000 for various other situations. Contact your attorney for exact details
- Vehicle – Up to $1,900 in value in one vehicle
- Personal property – All household items are exempt, jewelry and heirlooms up to $5000.
- Tools of the trade – Up to $5000 or double if that if married and both use tools.
- Insurance – Including disability benefits, life insurance with specific details for allowing it. Speak with your attorney for details
- Pensions – County & public employee pensions, public retirement benefits and private retirement accounts with details that apply.
- Public benefits – Unemployment, welfare, workers’ compensation and financial aid to students.
- Alimony and child support
Los Angeles Bankruptcy Lawyer
Due to the complexities in the Bankruptcy laws, it is best to speak a knowledgeable bankruptcy attorney to determine which set of exemptions to use. If you attempt to file on your own and file for exemptions incorrectly, this can lead to that property being taken even if it would have been considered exempt. Our experienced and thorough bankruptcy lawyers know the ins and outs of filing for bankruptcy and will be able to recommend whether to file Chapter 7 or Chapter 11 bankruptcy and which exemptions are right for you. Contact our office today, we are ready to help you through the difficult decisions you have ahead of you.
Los Angeles Bankruptcy Attorneys - Law Offices of Alon Darvish
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