| One of the main concerns of someone who is | | | | Furnishings, appliances, household goods, books, |
| considering filing for bankruptcy is whether they | | | | musical instruments, clothing, animals, and crops - |
| can keep their property if they file for | | | | Up to $525 per item |
| bankruptcy. In the majority of circumstances all | | | | Explanation: You can keep all household furniture, |
| of the assets of the person can be protected in a | | | | home electronics, appliances and clothing items |
| bankruptcy through the use of bankruptcy | | | | that do not total over $525 in value. The $525 in |
| exemptions. Bankruptcy exemptions provide a list | | | | value would apply to each item and it refers to |
| of items that you can keep when you file for | | | | liquidation/pawn shop value, not the replacement |
| bankruptcy. In California there are two sets of | | | | value of the items. It is rarely the case that one |
| bankruptcy exemptions that are available to | | | | household item is worth more than $525 in value. |
| debtors: 703 or 704 bankruptcy exemptions. | | | | If there were an item above the $525 value then |
| When filing for bankruptcy in California you may | | | | you could use your unused wildcard to protect it. |
| only use one of the two bankruptcy exemptions. | | | | Jewelry - $1,350 |
| If you do not own a home or have very little | | | | Explanation: You can protect any jewelry you |
| equity in your home, then generally you will select | | | | own up to the value of $1,350. If your jewelry is |
| the protections of 703. | | | | worth more than $1,350 in liquidation value then |
| If you are considering filing for bankruptcy and | | | | you can utilize any unused portion of the wildcard |
| are concerned that you may be unable to keep | | | | to protect the remaining value. |
| your property, understanding 703 protections | | | | Tools of the trade, professional books - $2075.00 |
| may resolve your concerns. 703 Bankruptcy | | | | Explanation: If you have tools, equipment, |
| protection exemptions protect the following | | | | machinery that it is used as part of your |
| property: | | | | profession or business then you can utilize this |
| Property | | | | exemption to protect up to $2,075 in the value of |
| Homestead Protection - $20,725 | | | | your tools, equipment, office equipment. If your |
| Explanation: If the home you live in contains equity | | | | tools or equipment are worth more than $2,075 |
| then the homestead protection can be used up to | | | | then you can utilize any unused portion of the |
| $20,725 to protect the equity in your home, plus | | | | wildcard to protect the remaining amount. |
| $1,100.00 (Wildcard protection) can be used | | | | Pensions & Retirements - ERISA qualified benefits |
| toward the equity in your home if it is not used | | | | needed for support/federal pension exemptions |
| to protect any other property. | | | | Explanation: The majority of retirement and |
| Wildcard Protection - $1,100 | | | | pensions qualify for protection under this |
| Explanation: The wildcard protection can be used | | | | exemption including IRA's, 401K's and profit |
| to protect any property you own up to the value | | | | sharing plans for retirement. You should have your |
| of $1,100. If you do not have equity in your home | | | | type of retirement account reviewed to ensure |
| or the equity in your home is less than $20,725 | | | | that there are no issues with its protection. In |
| then you can use the unused portion of the | | | | most instances the protection of pensions and |
| homestead protection as a wildcard. Your total | | | | retirement plans will not be an issue. |
| wildcard protection can total $21, 825 if the | | | | Bank Accounts - Wildcard protection |
| homestead protection is not used at all. | | | | Explanation: Any unused portion of the wildcard |
| Motor Vehicle - $3,300 | | | | can be used to protect funds in checking and |
| Explanation: You can protect the value of your | | | | savings accounts. |
| vehicle up to $3,300. If your vehicle is worth | | | | There are several other protections listed under |
| more than $3,300 after deducting for any loans | | | | 703 bankruptcy exemptions. The above reflects |
| owed on the vehicle, then you can utilize any | | | | the majority of items that clients have questions |
| amount remaining in the wildcard to protect the | | | | about protecting. If you are considering filing for |
| remaining equity in your vehicle. The motor vehicle | | | | bankruptcy and are concerned with protecting a |
| protection amount can only be used on one | | | | particular item of property contact our law office |
| vehicle. If you have a second vehicle that requires | | | | and we will assist you in determine if the asset is |
| protection because there is equity then you can | | | | protected. |
| utilize the unused wildcard. | | | | |