Often people believe filing for bankruptcy would result in a loss of all your assets and valuables. The Bankruptcy laws are not designed to strip you of all you have. In actuality, there are “exemptions” that are provided which allow a person to keep most necessary and essential assets.
Real Property
In regards to your real property if your property does not have equity, you will be able to keep this property as long as you maintain the monthly mortgage payment.
If your home does have equity, you may still be able to keep your home if you qualify under the
following exemptions:
1. Automatic Homestead for any Debtor -$75,000.00
2.The Debtor’s spouse or a minor dependent is living in the residence -$100,000.00
3.The Debtor is a senior, disabled, or 55 years of age or older - $175,000.00
Personal Property
Once a person decides to file for bankruptcy several important questions arise. Can I keep my car,
retirement, pension, furniture and jewelry?
You may keep the following, including but not limited to:
1. Wildcard of $23,250.00 - which can include Cash or funds in your savings or checking
account. This section can also supplement other property such as a vehicle which the Motor Vehicle exemption would not cover entirely. Code of Civil Procedure Section 703.140 (b)(3)
2. Motor Vehicle of $3,525.00 – this amount can be supplemented by the wild card and
allow you to keep your motor vehicle even if it is above the amount of $3,525.00. Code of Civil Procedure Section 703.140 (b)(2)
3. Interests in IRA, ERISA, Keogh or other pension or profit sharing plans – no limit on
the dollar value. Code of Civil Procedure Section 703.140 (b)(10)(E)
4. Life Insurance (un-matured) – no limit on the dollar value. Code of Civil Procedure Section 703.140 (b)(7)
5. Household Goods & Furnishings, personal clothing – no limit on the dollar value.
Code of Civil Procedure Section 703.140 (b)(3)
6. Jewelry of $1,425.00 - this amount can be supplemented by the wild card and allow you
to keep your jewelry even if it is above the amount of $1,425.00. Code of Civil Procedure Section 703.140 (b)(4)
Please note that there are other assets you may be able to keep which were not inclusive in this list, you can find these exemptions in the California Code of Civil Procedure or seek the advice of an experienced Bankruptcy Attorney.
Real Property
In regards to your real property if your property does not have equity, you will be able to keep this property as long as you maintain the monthly mortgage payment.
If your home does have equity, you may still be able to keep your home if you qualify under the
following exemptions:
1. Automatic Homestead for any Debtor -$75,000.00
2.The Debtor’s spouse or a minor dependent is living in the residence -$100,000.00
3.The Debtor is a senior, disabled, or 55 years of age or older - $175,000.00
Personal Property
Once a person decides to file for bankruptcy several important questions arise. Can I keep my car,
retirement, pension, furniture and jewelry?
You may keep the following, including but not limited to:
1. Wildcard of $23,250.00 - which can include Cash or funds in your savings or checking
account. This section can also supplement other property such as a vehicle which the Motor Vehicle exemption would not cover entirely. Code of Civil Procedure Section 703.140 (b)(3)
2. Motor Vehicle of $3,525.00 – this amount can be supplemented by the wild card and
allow you to keep your motor vehicle even if it is above the amount of $3,525.00. Code of Civil Procedure Section 703.140 (b)(2)
3. Interests in IRA, ERISA, Keogh or other pension or profit sharing plans – no limit on
the dollar value. Code of Civil Procedure Section 703.140 (b)(10)(E)
4. Life Insurance (un-matured) – no limit on the dollar value. Code of Civil Procedure Section 703.140 (b)(7)
5. Household Goods & Furnishings, personal clothing – no limit on the dollar value.
Code of Civil Procedure Section 703.140 (b)(3)
6. Jewelry of $1,425.00 - this amount can be supplemented by the wild card and allow you
to keep your jewelry even if it is above the amount of $1,425.00. Code of Civil Procedure Section 703.140 (b)(4)
Please note that there are other assets you may be able to keep which were not inclusive in this list, you can find these exemptions in the California Code of Civil Procedure or seek the advice of an experienced Bankruptcy Attorney.
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