CA System 2 Exemptions

[GWBcasualty]

This exemption code was subject of discussion months ago 703.140(b)(3).
So, after reviewing many petitions on PACER I finally found the answer when I added up the amount exempted by a couple ($12k) which was above everything I saw before... btw I wish I could post that petition... filed and discharged in minimum time with a home valued at $905,000 vs mortgages for $886,000 thus qualifying for system 2 and still having WC money to use to exempt more staff... half a million of unsecured debt... avg income over $8k/month (household of 3) and avg expenses of $9k/month.... can't believe nobody tried to push in a an asset case or in a Ch 13.

Anyway this link has a clear statement as per 703.140(b)(3)

http://www.ca-bankruptcy-attorneys.com/california_exemption_chart.html

[GWBcasualty]

Flags/Errors

Kept reading through this petition.

On the mean test the debtors reports about $2,500 of gross wages, and about $5k of retirement funds distribution, plus other income to get them over $8k/month... on the expense part amongst other things lists $600/mo health insurance.

On schedule I wages go up to $6k+ and no retirement (that's fine, he now has a job and doesn't need to draw from IRA...) but than the lawyer adds:
"Debtor will start having $600/mth withheld for health insurance starting with next paycheck."

And they still allowed the $600/mo on the look back?

Furthermore.
On schedule J debtor lists as current expenses $1,170 in student loan (I assume for the college age son listed as a member of the household) however the student loan is nowhere to be found on the rest of the petition.

Again this is a Ch.7 with $1mil+ assets and $1.5mil debts discharged in minimum time with no questions asked.

I am starting to think that the payment of certain attorney fees includes the trustee not reading your petition... in that case I can see that paying can give a certain peace of mind

[justbroke]

Are you sure it was a "consumer" Chapter 7?

[GWBcasualty]

Are you sure it was a "consumer" Chapter 7?

Yes.
I wish I could post it... very interesting.

[justbroke]

Well, if they had expenses of $9K a month and income of $8K a month, they are a Chapter 7. Doesn't matter what their secured or unsecured debts are. Paying for health insurance is allowable and does not need to be made in the past and continuing into the future (11 USC 707(b)). Schedule J is a current view with a slant towards the future. Medical insurance for people at, near, or over retirement can be expensive, so $600/month is nothing. I pay $620/month for a family of 4.

Whether the United States Trustee (UST) scrutinizes a particular petition over another, is beyond anyone's guess.

[GWBcasualty]

New limits - System 2

Homstead - unused portion can be used for anything $22,075
Household goods - up to $550 x item, no limits (reasonable & necessary)
Motor vehicles - $3,525 (1 vehicle)
Tools of the trade - $2,200
Jewelry - $1,425
Wild Card - $1,175