California Bankruptcy Laws and California Bankruptcy Attorney

What Can I Keep?

You can choose one of two California "exemption schemes," whichever best suits your circumstances.

Under the first exemption scheme, you can keep:

• Your home, if you don't have more than $50,000 in equity in the house (today's value less costs of sale less payoff balances on all liens and mortgages); if single and not disabled or $75,000 for families if no other member has a homestead; $125,000 if 65 or older or disabled; $100,000 if 55 or older, single and earned less than $15,000 or married and earned less than $20,000 and creditors forced the sale. Sale proceeds are exempt for 6 months after received.
• Your motor vehicle, if you don't have more than $1,900 in equity in the vehicle (today's value less costs of sale less payoff balances on all liens and mortgages).
• Up to $2,000 in building materials to improve your home
• Unemployment, disability, veterans', workers' compensation and social security benefits
• Appliances, furnishing, clothing and food needed
• Bank deposits from Social Security Administration up to $2000
• Jewelry, family heirlooms and art up to a total of $5,000 in value
• Burial plots
• Health aids
• Alimony
• Retirement plan and life insurance proceeds
• Business partnership property
• Tools of your trade, up to $5,000 in value

Under the second exemption scheme, you can keep:

• Your home, if you don't have more than $18,450 in equity in the house (today's value less costs of sale less payoff balances on all liens and mortgages).
• Up to $925 "wild card" exemption of any property, unused portion of home exemption or burial plot exemption
• Your motor vehicle, if you don't have more than $2,950 in equity in the vehicle (today's value less costs of sale less payoff balances on all liens and mortgages).
• Appliances, furnishings. Books and musical instruments, up to $475 in value per item
• Jewelry, up to $1,225 in value
• Burial plots up to $18,450, instead of $18,450 in your home
• Health aids
• Unemployment, disability, veterans', workers' compensation and social security benefits
• Alimony
• Retirement plan and life insurance proceeds
• Tools of your trade, up to $1,850 in value

New California Bankruptcy Law

On April 20, 2005, the President signed into law the California Bankruptcy law Abuse Prevention and Consumer Protection Act, which limits individual access to US bankruptcy courts. Some of the effective changes include:

• New bans on Chapter 7
• Increased Chapter 13 payments
• New presumptions against debtors with increased penalties
• The reduction of judicial discretion to balance competing interests
• The time between subsequent discharges is expanded

The new California bankruptcy laws are effective October 17, 2005, but several changes to the Bankruptcy Code that are contained in the Bankruptcy Abuse Prevention and Consumer Protection Act are effective either upon enactment or are retroactively effective.

Under the new Bankruptcy law, you are required to meet with an approved credit counselor in your judicial district in the six months immediately preceding your filing for bankruptcy.

An additional new federal bankruptcy requirement is that you must file any overdue tax returns within weeks of filing a Chapter 7 bankruptcy law.

Money Matters:

Money has value since individuals understand that our money in the U.S. will be accepted in return for goods and services. So the value is really because people are confident that they can use money they receive from their jobs or investments to then purchase goods and services and to pay bills they owe for such things as electricity and water. Our currency though is just paper and coins are just metal. It is the ability to use them in exchange for things we want or need that gives them value.

Planning for filling bankruptcy law

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