Exemptions: Long Beach, California Bankruptcy Attorney

California has opted out of the federal bankruptcy exemptions that are found in the Bankruptcy Code. Instead, the bankruptcy courts in California allow a debtor to use the exemptions found in Sections 703 and 704 of the California Code of Civil Procedure, provided that the debtor has lived in California for the 730 days preceding the filing of the bankruptcy. The legislature can change the exemptions at any time. Please call our office to make sure you have the latest information.

California has 2 sets of bankruptcy exemptions. You must choose either 703 or 704. You may not mix and match. The following is a summary of both sets of exemptions. Note: Some of the exemptions below, including the homestead, are subject to federal restrictions

Set 1 CCCP §704

Homestead

• Real or personal property you occupy including a mobile home, boat, stock cooperative, community apartment, planned development or condo to $50,000 if single and not disabled; $75,000 for families if no other member has a homestead; $150,000 if age 65 or older, or physically or mentally disabled; $150,000 if 55 or older and earn not more than $15,000 if single, or earn not more than $20,000 if married, and creditors seek to force the sale of your home; sale proceeds exempt for 6 months after received unless debtor(s) use the homestead exemption on another residence during that time (husband and wife may not double the amount).

Insurance:

• Disability or health benefits
• Fraternal unemployment bonds
• Life insurance proceeds or avails if clause prohibits proceeds from being used to pay beneficiary's creditors
• Fidelity bonds
• Homeowners' insurance proceeds for 6 months after received, to homestead exemption amount
• Matured life insurance benefits needed for support
• Unmatured life insurance policy § 704.100
• Unmatured life insurance policy loan value to $9,700 (husband and wife may double)

Miscellaneous

• Business or professional license, except liquor licenses

Pensions

• County employees
• County firefighters
• County peace officers
• Private retirement benefits, including IRAs and KEOGHs
• Public employees.
• Public retirement benefits

Personal Property

• Appliances, furnishings, clothing and food to the extent ordinary and necessary
• Bank deposits from Social Security Administration to $2,425 ($3,650 for husband and wife)
• Building materials to $2,425 to repair or improve home (husband and wife may not double amount)
• Burial plot
• Health aids
• Jewelry, heirlooms and art to $6,075 total (may not be doubled).
• Motor vehicles to $2,300 (may not be doubled)
• Personal injury causes of action
• Personal injury recoveries needed for support; if receiving installments at least 75%
• Wrongful death causes of action
• Wrongful death recoveries needed for support; if receiving installments, at least 75%

Public Benefits

• Aid to blind, aged and disabled
• Financial Aid to Students
• Relocation benefits
• Union benefits due to labor dispute
• Unemployment benefits
• Worker's Compensation

Tools of Trade

• Tools, implements, materials, instruments, uniforms, books, furnishings, equipment, vessel, motor vehicle to $6,075 total; to $12,150 total if used by both spouses in same occupation (cannot claim motor vehicle under both tools of trade exemption and motor vehicle exemption).

Wages

• Public employee vacation credits; if receiving installments, at least 75%
• 75% of wages paid within 30 days of filing for bankruptcyl certain exemptions apply

Wild Card

• None

SET 2 CCCP § 703

Homestead

• Real or personal Property including a co-op, used as residence to $17,425; unused portion of homestead may be applied to any property.

Insurance:

• Disability or health benefits
• Life insurance proceeds or avails needed for support
• Unmatured life insurance contract accrued avails to $9,300
• Unmatured life insurance policy other than credit life insurance contract

Miscellaneous

• Alimony, child support to the extent necessary for support

Pensions

• ERISA qualified benefits needed for support

Personal Property

• Animals, crops, appliances, furnishings, household goods, books, musical instruments and clothing to $450 per item
• Burial plot to $17,425, in lieu of homestead
• Health Aids
• Jewelry to $1,150
• Motor vehicle to $2,775
• Personal injury recoveries to $17,425 (not to include pain and suffering or pecuniary loss)
• Wrongful death recoveries needed for support

Public Benefits

• Crime victims' compensation.
• Public Assistance
• Social Security
• Unemployment benefits
• Veterans' benefits

Tools of Trade

• Implements, books and tools of trade to $1,750

Wages

• None

Wild Card

• $925 of any property plus any unused portion of homestead or burial exemption