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.