System 1 and 2 in California

[ready2puke]

In system 1 you can protect your IRA but you dont get a large wildcard.
In system 2 your IRA is NOT protected but you get over 21k to use as you like.

Has anyone in Ca. used system 2 and was able to protect your IRA?
Thanks

[GWBcasualty]

http://legalconsumer.com/bankruptcy/means-test/index.php

[ready2puke]

Off limits lol...I misread that phrase..meaning no can touchy...I actually did find an updated link thanks for that one also..

http://www.thebankruptcysite.org/exemptions/california.html

this one maybe alittle easier to read...
Whew...have my first paying appointment with my attorney tonight and trying to do as much homework as i can. He seems to think the trustee can take my property which 35% of it is invested in my IRA...I know very confusing
But you can buy property in any IRA in any part of the world.
With my 15k exemption and how much my poor dirt in Mexico is worth now Im hopeing the trustee wont want it deal with the headache of selling it

[GWBcasualty]

Good luck on your first consultation.

Let me know if you get a definite answer to this in system 2:



Is there an aggregate amount as in the Federal exemptions? And, if not, does it go toward the homestead+wild card?

[ready2puke]

I am wondering the same thing. At $525 each item everything is exempt. Also it doesnt say that it goes towards homestead wildcard. I would think it would

[GWBcasualty]

Did you find out anything definitive?

[ready2puke]

Yes I think...he said it doesnt go into the wildcard

I also asked if I would have to list everything piece by piece and he said no, we'll just put them all in a category.
He also pulled out a book on Exempt and highlited the part about IRA's. Hes not totally convienced IRA's are 100% exempt. He has seen trustees liquidate someones IRA's if they have a good income and have youth on their side. He told me since I'm almost 60 and have nothing else in the world I'll probably be ok.
He also told me to wait to file (crap ). He wants more time between last payment (which was Aug. 07) and last bal transfers ( which was June '07). He says he sees all the time where credit card co. file objections.
As far as my IRA and my Mexico property, thats a toss up...
I'll keep you posted
But as far as your question goes we in Ca. have it good as far as possessions and hes says its no biggie, they wont come to you home and check it out. He is very conservative and if he feels that way about that I trust him

[GWBcasualty]

He wants more time between last payment (which was Aug. 07) and last bal transfers ( which was June '07). He says he sees all the time where credit card co. file objections.

Thanks for the update... as for the above... WHAT?? That is almost 2 years ago!

[albacore44]

Thanks for the update... as for the above... WHAT?? That is almost 2 years ago!

I was thinking that myself........holy cow......2 years ?? How would you avoid getting sued ??

[ready2puke]

Oh my Im a dummy....I meant 2008..so sorry

Thanks for the update... as for the above... WHAT?? That is almost 2 years ago!

dont know what I was thinking or not thinking....

[albacore44]

dont know what I was thinking or not thinking....

thats a relief. I almost messed my pants

[ready2puke]

Not thats funny

What a visual...I PM'd you...

[GWBcasualty]

I am wondering the same thing. At $525 each item everything is exempt. Also it doesnt say that it goes towards homestead wildcard. I would think it would

Found this, the values are outdated, but it states an AGGREGATE value for home furnishing, so that doesn't diminishes the Wild Card deduction.

http://www.hagenhagenlaw.com/CM/BankruptcyFAQs/SpecificFAQs.asp

[B]Which Assets Can I Protect From Liquidation By A Bankruptcy Trustee?
[/B]
There are two sets of exemptions provided under California law, only one of which can be selected in each case. One set is the "homestead" set of exemptions, found in the California Code Of Civil Procedure at Section 704, and the other is the "wildcard" set of exemptions, found in the California Code Of Civil Procedure at Section 703. If you own real estate in which you reside and there is equity above and beyond costs of sale, you will likely want to protect that equity by claiming the homestead set of exemptions which, in addition to protecting other items such as $2,300 worth of vehicle equity, $6,075 of jewelry equity, home furnishings, and wearing apparel, allows you to protect $50,000 of equity if you are single, $75,000 of equity if you are married or head of household, and, with certain special limitations, $150,000 of equity if you are disabled, over the age of 65, or over the age 55 and earning less than approximately $20,000 per year. If you do not own real estate in which you reside or there is no other equity in the property you own, then you will probably want to claim the wildcard set of exemptions which, in addition to protecting other items such as $2,950 worth of vehicle equity, $1,225 of jewelry equity, $9,950 of unmatured life insurance policy cash value, home furnishings and wearing apparel of up to $475 per item or $9,850 in the aggregate, allows you to protect up to $19,425 of any other asset or assets. For example, say you own a vehicle worth $10,000, free and clear of any liens. You can claim the first $2,950 of equity exempt using the automobile exemption within the wildcard set. You could claim the other $7,050 of vehicle equity exempt using a portion of the wildcard exemption, and you would still have another $12,375 ($19,425 less $7,050) of the wildcard to protect other assets, such as bank account balances, stock, etc.

[ready2puke]

What? You didnt believe me??? lol Just giving you a hard time

[arami008]

Is system 2 in CA saying that if you have 21k in cash you can keep them? Or does it have to be property?