This is a Countdown of the Top 12 Malpractice Mistakes Made by California Bankruptcy Attorneys Mistake #2: Not making a “Motion to Compel the Trustee to Abandon Real Property” to remove the exempt home from the bankruptcy estate. Note: This article focuses on California bankruptcy attorneys and may reference California and 9th Circuit law. […]
Breaking News Bankruptcy Exemptions Have Changed in California As of April 1, 2016, as per the law, the Bankruptcy Exemptions are raised based on the 3 year cost-of-living change. Bankruptcy Exemptions are what the law lets you keep in a Bankruptcy for a “Fresh Start.” In California there are 2 sets of exemptions. One […]
Can a creditor who has a secured debt discharged in bankruptcy foreclose on my home or repossess my car? People often come to see me asking if a creditor can still foreclose on their home or repossess a car after Chapter 7 bankruptcy or a Chapter 13 bankruptcy reorganization. After all, the debt to the […]
The Two California Bankruptcy Exemption Systems
Today we are going to talk about bankruptcy exemptions. Exemptions are a fancy word for a list of things you are able to keep inside and sometimes outside of bankruptcy that creditors cannot reach.
In California we have two systems,. One set of exemptions is what we call the “standard system.” The other exemption system is referred to as the “wild card” system.
The difference is that the wild card system can only be used in bankruptcy where the standard system can be used both inside and outside of bankruptcy.
How The Bankruptcy Exemption Systems Works
The chief benefit of the standard exemptions are that, if you have significant equity in a home, the standard exemption system is what you are going to have to use to protect that home. That equity protection is $75,000 for an individual, $100,000 for a husband and wife, and $175,000 for senior citizens, disabled people and low income individuals 55 or older.
Standard California Bankruptcy Exemptions & Wild Card California Bankruptcy Exemptions. A Side by Side California Bankruptcy Exemption Comparison Chart (This Chart Includes the New California Bankruptcy Exemptions Amounts as of April 1, 2016) TYPE OF PROPERTY STANDARD CALIFORNIA BANKRUPTCY EXEMPTIONS WILDCARD CALIFORNIA BANKRUPTCY EXEMPTIONS California Homestead Exemption for Debtor’s Principal Residence (including mobile homes, houseboats & […]