CA Bankruptcy Exemptions

Counsel from a Cerritos Bankruptcy Attorney

If you are filing for bankruptcy, you may be exempt from certain property (Chapter 7) and payments to unsecured creditors (Chapter 13). While some states let you choose between federal and state exemptions, California requires that you must use state exemptions; however, there are two different sets of exemptions that you may decide between.

Regardless of your exact circumstances, it is crucial that you enlist the help of a qualified legal professional. At the Law Office of Raymond J. Seo, we understand that bankruptcy can seem overwhelming in addition to the stress of your financial situation. Our attorney has over two decades of bankruptcy cases and has helped countless clients like you build a better financial future.

When you are ready to entrust your case to our Cerritos bankruptcy exemption attorney, call our firm at (888) 488-8513.

Bankruptcy Exemption System 1

Bankruptcy Exemptions under System 1:

• Homestead: protects a residence for at least $300,000 if the median sale price is less than the previous yearly rate. The exemption can cover up to $678,391 which may increase if the median sale price increases year over year.
• Motor Vehicle: protects equity in cars, trucks, motorcycles, or other vehicles for $7,500
• Personal Property: any household or personal items, health aids, personal injury recoveries, burial plots, jewelry & heirlooms & art up to $9,525
• Tools of Trade: anything that is used for an occupation up to $9,525 (single) and $19,050 (married in same trade); vehicles may also be exempt up to a certain amount
• Bank Deposits: from Social Security up to $3825 (single) and $5,725 (married); from public benefit payments up to $1,900 (single) and $2,825 (married)
• Wages: 75% of wages that were made within 30 days of filing and vacation credits for public employees
• Pensions & Retirement Funds: tax-exempt retirement accounts, public retirement benefits, and IRAS & Roth IRAS up to $1,512,350 for cases filed between April 1, 2022, and March 31, 2025.
• Public Benefits: benefits for unemployment, disability, worker's compensation, relocation, and student financial aid
• Insurance: disability, health, life insurance, and life insurance policy up to $11,475, fidelity bonds
• Professional License: If you have a business or professional license, then you may keep those as well.

Bankruptcy Exemption System 2

Bankruptcy Exemptions under System 2:

• Homestead: up to $31,950 for residence
• Motor Vehicle: up to $7,500
• Personal Property: personal and household items up to $600 per item, burial plot up to $31,950, jewelry up to $1,900, health aids, wrongful death recoveries, personal injury recoveries up to $31,950
• Tools of Trade: implements, tools, and books of trade up to $9,525
• Pensions & Retirement Funds: tax-exempt retirement accounts, IRAs & Roth IRAs up to $1,512,350, and ERISA
• Public Benefits: unemployment, social security, Veteran's benefits, public assistance, benefits for crime victims
• Insurance: disability, life insurance policy (including interests, dividends, loan, or cash up to $12,860)
• Wildcard: $1,700 and any unused burial or homestead exemption in any property or $33,650 total
• Alimony and Child Support: court-ordered settlement money

Contact the Law Office of Raymond J. Seo

To find out how you can maximize your assets from these bankruptcy exemptions, get in touch with Cerritos bankruptcy attorney, Raymond J. Seo. He has over two decades of experience helping clients file for bankruptcy and obtain debt relief.

The bankruptcy code changes periodically so it is important to contact our attorney to know how the law applies to your specific circumstances. Schedule your free case evaluationtoday!