While Chapter 13 bankruptcy is a federal law and is available across the United States, including California, there are some specific aspects and regulations that may differ in California. Here are a few ways in which Chapter 13 bankruptcy may be different in California:
Exemption Laws: California has its own set of exemption laws that determine which assets you can keep during bankruptcy.
These laws dictate the value of certain assets that are protected from being sold to repay creditors. Exemption amounts can vary, and it's important to consult with a bankruptcy attorney to understand the specific exemptions available in California.1. Homestead Exemption: In California, there is a generous homestead exemption that allows debtors to protect a significant amount of equity in their primary residence.
The homestead exemption amount varies based on factors such as age, disability, and marital status.California has one of the highest homestead exemption amounts in the country.
California offers a generous homestead exemption that allows you to protect equity in your primary residence. The exemption amounts vary based on factors such as age, disability, marital status, and whether you have dependents. As of September 2021, the homestead exemption amounts range from $75,000 to $600,000.2. Personal Property Exemptions: California provides specific exemption amounts for various types of personal property.
For example, the state allows exemptions for clothing, household furnishings, appliances, and other personal items. The exemption amounts vary depending on the item. California also has a "wildcard" exemption that can be used to protect any property up to a certain value.- Clothing and Personal Effects: California has a specific exemption for clothing, allowing you to protect your necessary and reasonable wearing apparel. The exemption does not have a specific dollar amount but is based on what is considered reasonable and necessary.
- Household Furnishings and Appliances: California provides an exemption for household furnishings, including furniture, appliances, and other items typically found in a home. The exemption amount is up to $725 per item. Additionally, there is a separate exemption for appliances and furnishings necessary for the debtor or their dependents' health and welfare.
- Jewelry: California has a specific exemption for jewelry with a value of up to $8,000. This exemption allows you to protect valuable items such as wedding rings or heirloom jewelry within the specified value limit.
- Motor Vehicles: California has a motor vehicle exemption that allows you to protect equity in your vehicle(s). As of September 2021, the exemption amount is $3,325 for one vehicle and $5,350 for two or more vehicles. This exemption helps you keep your vehicle(s) during bankruptcy proceedings.
- Tools of Trade: California provides an exemption for tools, equipment, instruments, and books necessary for your occupation or trade. The tools of trade exemption allows you to protect these items up to a certain value.
- Wildcard Exemption: California offers a "wildcard" exemption that can be used to protect any property. As of September 2021, the wildcard exemption amount is $1,425 plus any unused portion of the homestead exemption, which provides flexibility to protect assets of your choosing.