If you’re filling bankruptcy with a bankruptcy lawyer in Encino, you can be exempt from certain property under Chapter 7, and payments to unsecured creditors under Chapter 13. While some states allow you to choose between federal and state exemptions, California requires the use of state exemptions.
In California, there are two sets of state exemptions: System 1 and System 2. System 1 exemptions can be:
For real or personal property you occupy (such as mobile homes, boats, stock cooperatives, community apartments, planned developments, or condos), it’s up to $75,000 if you’re single and not disabled. If none of your other family members has a homestead, it’s up to $150,000. It can be up to $175,000 if you’re older or disabled.
This includes appliances, furnishings, clothing, food, burial plots, health aids, and personal injury causes of action and recoveries. For bank deposits from Social Security Administration, it amounts to $2,875 for individuals and $4,300 for spouses. For home repair or improvement building materials, it’s up to $2,875. It amounts to $7,175 for jewelry, heirlooms, and art, while for motor vehicles, it’s $2,725.
This includes disability or health benefits, fidelity bonds, fraternal unemployment benefits, and matured life insurance benefits. It also includes homeowners’ insurance proceeds for 6 months after receipt and life insurance proceeds. For an unmatured life insurance policy loan value, it amounts to $11,475.
System 2 exemptions can be:
This amounts to $24,060 for real or personal property used as a residence, like a co-op.
This is up to $4,800 of equity for motor vehicles.
This includes health aids and wrongful death recoveries. It’s up to $600 per item for animals, crops, appliances, furnishings, household goods, clothing, books, and musical instruments. In lieu of homestead, it amounts to $24,060 for burial plots. For jewelry, it amounts to $1,425, while for personal injury recoveries it’s up to $24,060.
System 1 and 2 include more exemptions than those mentioned. To learn more about them, contact a local bankruptcy attorney in Encino specializing on the subject.