CA cash exemption

[businessman]

For the CA wildcard exemption (system 2) for Chapter 7, it states:

703.140(b)(5) - $1,100 of any property. Any unused amount of burial or homestead exemption of any property.

We rent, and so we will use very little of our $17,425 homestead exemption. We also won't need to use the $7,500 burial plot exemption. So does this mean if we have 10K cash that we'd be able to exempt it?

[ccsjoe]

Here are the current system 2 exemptions (excerpt):

Homestead

703.140(b)(1) Real or personal property, including co-op, used as a residence up to $20,725.

Personal Property

703.140(b)(1) - Burial plot up to $20,725, instead of homestead.

703.140(b)(2) - Motor vehicle up to $3,300.

703.140(b)(3) - Clothing, household goods, appliances, furnishings, animals, books, musical instruments and crops up to $525 per item.

703.140(b)(4) - Jewelry up to $1,350.

703.140(b)(5) - $15,000 of any property, less any claim for homestead or burial plot.

703.140(b)(5) - $1,100 of any property. The unused portion of the burial or household exemption for any property.

703.140(b)(9) - Health aids.

703.140(b)(11) - Wrongful death recoveries needed for support.

703.140(b) (11) - Personal injury recoveries up to $20,725, not to include pain, suffering or pecuniary loss.


Basically since you have no homestead, you have over 20K to use for exemption purposes as a wildcard.

I am using the same system by the way

[businessman]

Would that include equity in a single motor vehicle? For example, if we got a new honda civic and put 10K, would that be exempt?

[keptdigging]

Wildcard in system 2 an be used for anything... I exempted a bit of excess equity in a car (worth $4k, so just over the motor vehicle exemption), what's left of my coin collection... and cash balances in accounts. The lousy housing market, which makes my home under water, has been a blessing in allowing me to use System 2.

One note: The exact dollar amounts are out of date... they've been increased. I know this because I filed last week... total wildcard is 23250. It's surprisingly difficult to find the updated numbers on line.

[businessman]

Does that mean I could exempt 7K of excess equity in our one car?

[keptdigging]

Does that mean I could exempt 7K of excess equity in our one car?

absolutely.

[keptdigging]

Here are up to date amounts. (For "System 2, be sure to scroll down to the second set... the "703.xxx" list.) http://www.courtinfo.ca.gov/forms/do...exemptions.pdf

[businessman]

Another question about this car. I've been told that I should secure employment before I file. So let's say I secure employment and then get a car. If I put 7K down on a new base-model Accord or Civic right before I file, will the trustee raise eyebrows about that?

I'm just wondering if the trustee will expect me to just get a 1K beater and be fine with it?

[ccsjoe]

businessman, that is a question best posed to a local atorney who knows the local trustees and what they will and will not accept. I suspect the answer is they will be ok, especially given that you'll be using part of the wildcard to exempt equity, but get yourself a couple free consultations to ask this and other questions. You have what may be a somewhat complex case if I recall from your other post correctly, something about a business. Use this time now to start interviewing attorneys to choose one via the free consults. Go in there with a set of questions you need answered.

keptdigging, thanks for finding the updated system 2 numbers. Yes, they are surprisingly very hard to find. I thought wildcard was 20K until the week we filed, when it came to light it was over 23K.