California Exemption - Causes of Action

[BKCA7]

Hello, I am filing pro se, Chapter 7, in California, and have no assets, but may eventually get compensation for wrongful foreclosure. No lawsuit has been filed; this is just speculation about future damages award for "causes of action" related to the wrongful foreclosure. "Causes of action" are covered under California Exemption System 1, Section 704.140, and covered under California Exemption System 2, Section 703.140. Section 704.140 appears to be unlimited; and Section 703.140 appears to be limited to $22,075 (this web site is not up-to-date at $20,725).

Questions:

I assume Sections 704.140 and 703.140 deal with recoveries from causes of action for both present and "post bankruptcy." Is this so?

Does Section 704.140 allow for unlimited recoveries from causes of action related to a wrongful foreclosure case?

Do I have this whole section misunderstood?

Thanks for any help in understanding how California Exemption System 1 and 2 may apply to the above scenario for recoveries from a pre Chapter 7 claim that is filed and awarded post Chapter 7 discharge.

[LadyInTheRed]

Does Section 704.140 allow for unlimited recoveries from causes of action related to a wrongful foreclosure case?

The exemption does not apply to a wrongful foreclosure case. It only applies to awards or causes of action for personal injury, which means bodily injury. It is not limited to a specific dollar amount, but is limited to an amount necessary for the support of the debtor or his/her dependents.

Do I have this whole section misunderstood?

Yep. You can't use it for a wrongful foreclosure claim.

Thanks for any help in understanding how California Exemption System 1 and 2 may apply to the above scenario for recoveries from a pre Chapter 7 claim that is filed and awarded post Chapter 7 discharge.

The only way to exempt the cause of action is to use the system 2 wild card exemption. If you don't have a homestead to exempt, you may want to use system 2 and apply whatever wild card exemption you don't need for other assets to the cause of action and see what the trustee does.

You can read 704.010 at http://www.leginfo.ca.gov/cgi-bin/di...04.010-704.210
and 703.010 at http://www.leginfo.ca.gov/cgi-bin/di...03.010-703.150