The California bankruptcy exemptions chart, see below, details the property you can exempt or protect from creditors when you file bankruptcy in California. You may exempt any property that falls into one of the exemptions categories below, up to the dollar amount listed. You will be able to kept this exempted property after you file bankruptcy. Please note that there are certain debts which you will not be able to erase in bankruptcy. (see Non-dischargeable Debts)
An exemption limit applies to any equity you have in the property. Equity is the difference between the value of the property and what is owed on the property. For example, a car valued at $5000 with a loan of $4500 has an equity value of only $500.
If the property is secured by a loan, such as a car or home, and you are current on the payments and the equity is covered by your exemptions, you may elect to keep making payments on the loan and keep this property through the bankruptcy. If all the equity is not covered by your exemptions the trustee may elect to liquidate this asset and distribute the proceeds. Generally, in this case, you would be entitled to the value of your exemption in the asset as a cash payment.
Bankruptcy law allows married couples filing jointly to each claim a full set of exemptions, unless otherwise noted.
To keep non-exempt property, a debtor must generally pay the trustee the value of the non-exempt property.
When you file bankruptcy in California you may also use certain federal exemptions in addition to your California exemptions.
California has two sets of exemptions. You must choose one or the other.
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ASSET | EXEMPTION DESCRIPTION | LAW SECTION |
HOMESTEAD | Real or personal property you occupy including mobile home, boat, stock cooperative, community apartment, planned development or condo to $75,000 if single and not disabled; $150,000 for families if no other member has a homestead (if only one spouse files, may exempt one-half of amount if home held as community property and all of amount if home held as tenants in common),$175,000 if 65 or older, or physically or mentally disabled; $100,000 if 55 or older, single and earn under $25,000 or married and earn under $35,000 and creditors seek to force the sale of your home; sale proceeds exempt for 6 months after received (husband and wife may not double). | 704.710, 704.720, 704.730 In re McFall, 112 B.R. 336 (9th Cir. B.A.P., 1990) |
PERSONAL PROPERTY | Appliances, furnishings, clothing and food needed | 704.020 |
Bank deposits from Social Security Administration to $2000 ($3000 for husband and wife) | 704.080 | |
Building materials to $2000 to repair or improve home (husband and wife may not double) | 704.030 | |
Burial plot | 704.200 | |
Health aids | 704.050 | |
Jewelry, heirlooms and art to $5000 total (husband and wife may not double) | 704.040 | |
Motor vehicles to $1900, or $1900 in auto insurance if vehicle(s), lost, damaged or destroyed (husband and wife may not double) | 704.010 | |
Personal injury and wrongful death causes of action | 704.140 (a), 704.150 (a) | |
Personal injury and wrongful death recoveries needed for support; if receiving installments, at least 75% | 704.140(b), (c), (d), 704.150 (b), (c) | |
May file homestead declaration | 704.920 | |
INSURANCE | Disability or health benefits | 704.130 |
Fidelity bonds | Labor 404 | |
Fraternal unemployment benefits | 704.120 | |
Homeowner's insurance proceeds for 6 months after received, to homestead exemption amount | 704.720 (b) | |
Life Insurance proceeds if clause prohibits proceeds from being used to pay beneficiary's creditors | Ins. 10132, Ins. 10170, Ins. 10171 | |
Matured life insurance benefits needed for support | 704.100 (c) | |
Unmatured life insurance policy loan value to $8,000 (husband and wife may double | 704.100 (b) | |
MISCELLANEOUS | Business or professional licenses | 695.060 |
Inmates' trust fund to $1000 (husband and wife may not double) | 704.090 | |
Property of business partnership | Corp. 15025 | |
PENSIONS | County employees | Gov't 31452 |
County firefighters | Gov't 32210 | |
County peace officers | Gov't 31913 | |
Private retirement benefits, including IRAs and Keoghs | 704.115 | |
Public employees | Gov't 21201 | |
Public retirement benefits | 704.110 | |
PUBLIC BENEFITS | Aid to blind, aged, disabled, AFDC | 704.170 |
Financial aid to students | 704.190 | |
Relocation benefits | 704.180 | |
Unemployment benefits | 704.120 | |
Union benefits due to labor dispute | 704.120(b)(5) | |
Workers' compensation | 704.160 | |
TOOLS OF TRADE | Tools, implements, materials, instruments, uniforms, books, furnishings, equipment, vessel, motor vehicle to $5,000 total; to $10,000 total if used by both spouses in same occupation (cannot claim motor vehicle under tools of trade exemption if claimed under motor vehicle exemption) | 704.060 |
WAGES | Minimum 75% of wages | 704.070 |
Public employees vacation credits; if receiving installments, at least 75% | 704.113 | |
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ASSET | EXEMPTION DESCRIPTION | LAW SECTION |
HOMESTEAD | Real or personal property, including co-op, used as residence to $17,425; unused portion of homestead may be applied to any property | 703.140 (b)(1) |
PERSONAL PROPERTY | Animals, crops, appliances, furnishings, household goods, books, musical instruments and clothing to $450 per item | 703.140 (b) (3) |
Burial plot to $17,425, in lieu of homestead | 703.140 (b) (1) | |
Health aids | 703.140 (b) (9) | |
Jewelry to $1,150 | 703.140 (b) (4) | |
Motor vehicle to $2,775 | 703.140 (b)( (2) | |
Personal injury recoveries to $17,425 (not to include pain and suffering; pecuniary loss) | 703.140 (b) (11) (D, E) | |
Wrongful death recoveries needed for support | 703.140 (b) (11) (B) | |
INSURANCE | Disability benefits | 703.140 (b) (10)() (C) |
Life insurance proceeds needed for support of family | 703.140 (b) (11) (C) | |
Unmatured life insurance contract accrued avails to $9,300 | 703.140 (b) (8) | |
Unmatured life insurance policy other than credit | 703.140 (b) (7) | |
MISC. | Alimony, child support needed for support | 703.140 (b) (10) (D) |
PENSIONS | ERISA-qualified benefits needed for support | 703.140 (b) (10) (E) |
PUBLIC BENEFITS | Crime victim's compensation | 703.140 (b) (11) (A) |
Public Assistance | 703.140 (b) (10) (A) | |
Social Security | 703.1400 (b) (10) (A) | |
Unemployment compensation | 703.140 (b) (10) (A) | |
Veterans' benefits | 703.140 (b) (10) (B) | |
TOOLS OF TRADE | Implements, books, and tools of trade up to $1,750 | 703.140 (b) (6) |
WAGES | NONE |
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WILD CARD | $925 of any property | 703.140 (b) (5) |
Plus unused portion of homestead or burial exemption, of any property | 703.140 (b) (5) | |
For more information on filing bankruptcy in California explore California Bankruptcy Law.
