The property that is at risk of liquidation depends on the type of bankruptcy that you are filing for. If you are filing for a Chapter 13 bankruptcy, you will not need to worry about losing any property. The reason for this is that you will be repaying your creditors over time, which eliminates the need to liquidate your assets to get the means for repayment. When it comes to Chapter 7 bankruptcy, there is a possibility that some of your property will be liquidated to repay creditors of your debts. California has exemption laws in place in order to protect some of the debtor’s property when they file for a Chapter 7. One of the main systems involving exemptions includes:
- Homestead – depends on the amount of people in your household and if you have any disabilities. The amount that is exempt is between $75,000 and $175,000.
- Motor Vehicle – $2,725 is exempt.
- Personal Property – some household items, jewelry, health aids and other property is exempt.
- Wages – 75% of wages.
- Retirement and Pensions – varies by case.
There are also regulations regarding the public benefits, insurance, and other miscellaneous property that is exempt. There is another system of exemptions that has a lower exemption in homestead and a higher exemption for motor vehicle and personal property. Depending on your needs and wants, you can seek the exemptions that best fit your situation. If you have questions about your unique circumstances and the property that you will be able to keep, feel free to contact my firm. I am Attorney Rick Banks and I have 12 years of experience when it comes to bankruptcy cases. I am familiar with the bankruptcy exemption laws in California and can assist you in the process. Schedule your initial consultation by contacting me today.