This is a Countdown of the Top 12 Malpractice Mistakes Made by California Bankruptcy Attorneys Mistake #3: Not making a “Motion to Compel the Trustee to Abandon Debtor’s Business” from the Chapter 7 bankruptcy estate. Note: This article focuses on California bankruptcy attorneys and may reference California and 9th Circuit case law. However, most […]
The Hidden Dragster & Why You Never Lie in Bankruptcy
I often have clients ask the same question. I tell the client “sure, you can give the house, car or whatever to your friend/relative for free or $1. The bankruptcy Trustee will be glad to take it away from them and sell to pay your creditors.” Often the asset they are trying to protect can be protected if they are in their own hands but cannot be protected after the transfer.
Example of a Lie in Bankruptcy
I had husband and wife clients many years ago that decided to not tell me about or list a dragster they owned as an asset in their bankruptcy. After all, he wanted to keep it and since it was not registered with the Department of Motor Vehicles they though no one would know about it. (more…)
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 & […]