Unlimited household exemptions in California?

[nozar]

For Chapter 7, are household items exempt without a limit? NOLO seems to suggest that, at least for System 1:

Personal Property

• Household items and personal effects - 704.020. <-- no limit mentioned
• Residential building materials ...

System 2 does mention a limit:

Clothing, household goods, appliances, furnishings, animals, books, musical instruments, and crops up to $725 per item - 703.140(b)(3).

[justbroke]

I can't help you with exemptions because it's a question of law. My understanding, however, is that California has two exemption schemes (System I and System II). One is better for people with real property, and the other for people with no real (estate) property and have more things (personal property).

You'll have to decide which is better for you. I think that System II may also have an "unused homestead" exemption that can be a wildcard, but I'm in Florida and haven't experienced those exemption schemes.

Because of the questions of law and the impact of choosing the wrong one, I never tell anyone which one to pick.

Nolo is a good source for things, but may not be as good as consulting with several local (California) attorneys that practice within the bankruptcy district where you live.

[flashoflight]

Appliances are a good way to convert non-exempt cash into another useful asset you would have had to buy anyway. For example in a chapter 13 situation, I'd buy a washer with a long manufacturer's warranty for BOTH parts and labor (eg. Speed Queen can be up to 7 years). Even in a chapter 7 situation, a high quality $1k appliance is probably worth less than half as soon as it's in your home with the 703 exemption and you have something useful rather than giving the money to unsecured creditors. The overriding theme is you've got to spend down non-exempt cash or plan on giving it to the unsecured creditors or don't file BK at all and make it hard for judgment creditors to find your cash.