Bankruptcy Tutor
Bankruptcy Exemptions or Assets that are kept in a Bankruptcy
California has 2 'systems' of bankruptcy. You must choose one. Each has different exemption provisions.
SYSTEM #1
Homestead
Real or personal Property you occupy including a mobile home, boat, stock cooperative, community apartment, planned development or condo to $50,000.00 if single and not disabled; $75,000.00 for families if no other member has a homestead; $125,000 if age 65 or older, or physically or mentally disabled; $100,000 if 55 or older, single and earn under $15,000 or married and earn under $20,000 and creditors seek to force the sale of your home; sale proceeds exempt for 6 months after received (husband and wife may not double the amount and may file a homestead declaration.
Insurance:
Disability or health benefits
Fraternal unemployment bonds
Life insurance proceeds or avails if clause prohibits proceeds from being used to pay beneficiary's creditors
Fidelity bonds
Homeowners' insurance proceeds for 6 months after received, to homestead exemption amount
Matured life insurance benefits needed for support
Unmatured life insurance policy loan value to $9,700 husband and wife may double to $19,400
Miscellaneous
Property of business partnership
Business or professional license, except liquor licenses
Inmates' trust funds to $1,225 (husband and wife may not double)
Pensions
County employees
County firefighters
County peace officers
Private retirement benefits, including IRA's and KEOGHS
Public employees
Public Retirement benefits
Personal Property
Appliances, furnishings, clothing and food needed
Bank deposits from Social Security Administration to $2,425 ($3,650 for husband and wife
Building materials to $2,425 to repair or improve home (husband and wife may not double amount)
Burial Plot
Health aids
Jewelry, heirlooms and art to $6,075 total (may not be doubled)
Motor vehicles to $2,300 in auto insurance if vehicle(s) lost, damaged or destroyed (may not be doubled)
Personal injury causes of action
Personal injury recoveries needed for support; if receiving installments at least 75%
Wrongful death causes of action
Wrongful death recoveries needed for support; if receiving installments, at least 75%
Public Benefits
Aid to blind, aged, disabled, AFDC (Aid to Families with Dependant Children)
Financial Aid to Students
Relocation benefits
Union benefits due to labor dispute
Unemployment benefits
Worker's Compensation
Tools of Trade
Tools, implements, materials, instruments, uniforms, books, furnishings, equipment, vessel, motor vehicle to $6,075 total; to $12,150 total if used by both spouses in same occupation (cannot claim motor vehicle under both tools of trade exemption and motor vehicle exemption.
Wages
Public employees vacation credits; if receiving installments, at least 75%
75% of wages paid within 30 days of filing for bankruptcy
Wild Card
NONE
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SYSTEM #2
Homestead
Real or personal Property including a co-op, used as residence to $17,425; unused portion of homestead may be applied to any property.
Insurance:
Disability or health benefits
Life insurance proceeds or avails needed for support
Unmatured life insurance contract accrued avails to $9,300
Unmatured life insurance policy other than credit
Miscellaneous
Alimony, child support needed for support
Pensions
ERISA qualified benefits needed for support
Personal Property
Animals, crops, appliances, furnishings, household goods, books, musical instruments and clothing to $450 per item
Burial plot to $17,425, in lieu of homestead
Health Aids
Jewelry to $1,150
Motor vehicle to $2,775
Personal injury recoveries to $17,425 (not to include pain and suffering or pecuniary loss)
Wrongful death recoveries needed for support
Public Benefits
Crime victims' compensation
Public Assistance
Social Security
Unemployment benefits
Veterans' benefits
Tools of Trade
Implements, books and tools of trade to $1,750
Wages
None
Wild Card
$925 of any property plus unused portion of homestead or burial exemption of any property
California has 2 'systems' of bankruptcy. You must choose one. Each has different exemption provisions.
SYSTEM #1
Homestead
Real or personal Property you occupy including a mobile home, boat, stock cooperative, community apartment, planned development or condo to $50,000.00 if single and not disabled; $75,000.00 for families if no other member has a homestead; $125,000 if age 65 or older, or physically or mentally disabled; $100,000 if 55 or older, single and earn under $15,000 or married and earn under $20,000 and creditors seek to force the sale of your home; sale proceeds exempt for 6 months after received (husband and wife may not double the amount and may file a homestead declaration.
Insurance:
Disability or health benefits
Fraternal unemployment bonds
Life insurance proceeds or avails if clause prohibits proceeds from being used to pay beneficiary's creditors
Fidelity bonds
Homeowners' insurance proceeds for 6 months after received, to homestead exemption amount
Matured life insurance benefits needed for support
Unmatured life insurance policy loan value to $9,700 husband and wife may double to $19,400
Miscellaneous
Property of business partnership
Business or professional license, except liquor licenses
Inmates' trust funds to $1,225 (husband and wife may not double)
Pensions
County employees
County firefighters
County peace officers
Private retirement benefits, including IRA's and KEOGHS
Public employees
Public Retirement benefits
Personal Property
Appliances, furnishings, clothing and food needed
Bank deposits from Social Security Administration to $2,425 ($3,650 for husband and wife
Building materials to $2,425 to repair or improve home (husband and wife may not double amount)
Burial Plot
Health aids
Jewelry, heirlooms and art to $6,075 total (may not be doubled)
Motor vehicles to $2,300 in auto insurance if vehicle(s) lost, damaged or destroyed (may not be doubled)
Personal injury causes of action
Personal injury recoveries needed for support; if receiving installments at least 75%
Wrongful death causes of action
Wrongful death recoveries needed for support; if receiving installments, at least 75%
Public Benefits
Aid to blind, aged, disabled, AFDC (Aid to Families with Dependant Children)
Financial Aid to Students
Relocation benefits
Union benefits due to labor dispute
Unemployment benefits
Worker's Compensation
Tools of Trade
Tools, implements, materials, instruments, uniforms, books, furnishings, equipment, vessel, motor vehicle to $6,075 total; to $12,150 total if used by both spouses in same occupation (cannot claim motor vehicle under both tools of trade exemption and motor vehicle exemption.
Wages
Public employees vacation credits; if receiving installments, at least 75%
75% of wages paid within 30 days of filing for bankruptcy
Wild Card
NONE
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SYSTEM #2
Homestead
Real or personal Property including a co-op, used as residence to $17,425; unused portion of homestead may be applied to any property.
Insurance:
Disability or health benefits
Life insurance proceeds or avails needed for support
Unmatured life insurance contract accrued avails to $9,300
Unmatured life insurance policy other than credit
Miscellaneous
Alimony, child support needed for support
Pensions
ERISA qualified benefits needed for support
Personal Property
Animals, crops, appliances, furnishings, household goods, books, musical instruments and clothing to $450 per item
Burial plot to $17,425, in lieu of homestead
Health Aids
Jewelry to $1,150
Motor vehicle to $2,775
Personal injury recoveries to $17,425 (not to include pain and suffering or pecuniary loss)
Wrongful death recoveries needed for support
Public Benefits
Crime victims' compensation
Public Assistance
Social Security
Unemployment benefits
Veterans' benefits
Tools of Trade
Implements, books and tools of trade to $1,750
Wages
None
Wild Card
$925 of any property plus unused portion of homestead or burial exemption of any property
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