The California State Bankruptcy Exemption Statutes

Written by Adam Peck Category: Nursing Homes January 23rd, 2013 2 min read

California System 1: California Civil Code Section 704
Some exemptions are listed below, but make sure to review the code fully to learn about others, especially if you have “non-work” income or assets – like an IRA, a pension, disability benefits, workers compensation, unemployment compensation, veterans benefits or an annuity.
The California legislature has developed two different bankruptcy exemption schemes, and you are permitted to choose the one that is best suited to you.

Federal Exemptions
•Not allowed

Residency Requirement
•None in addition to the federal requirement

Homestead
•Real or personal property you occupy including a mobile home, boat, cooperative, community apartment, planned development or condo, up to the following equity levels:

◦$50,000 if single and not disabled;

◦$75,000 for families if no other member has a homestead;

◦$150,000 if 65 or older, or physically or mentally disabled

◦$150,000 if 55 or older, single & earn under $15,000, or married & earn under $20,000

Personal
•Appliances, furnishings, clothing and food

•Social Security to $2,700; $4,050 for married couple

•Burial plot

•Health aids

•Jewelry, heirlooms & art to $6,750

•Car to $2,550, or the same in auto insurance if car was lost, or damaged

•Personal injury or wrongful death recoveries that are needed for support (75% of any installment payments)

Tools of the Trade
•Tools, implements, materials, instruments, uniforms, books, furnishings, equipment, vessel, one commercial motor vehicle – max $4,850 or $9,700 with joint occupation; up to $6,760 individually or $13,475 if used by both spouses in the same occupation. Note: You cannot claim the motor vehicle under this exemption if it was claimed under personal property.

California System 2: California Civil Code Section 703.140
Federal Exemptions
•Not allowed

Residency Requirement
•None in addition to the federal requirement

Homestead
•Real or personal property used as a residence to $20,725 in equity (and any unused portion of this exemption may be applied to any property; see “Wildcard” below)

Personal
•Animals, crops, appliances, furnishings, household goods, books, musical instruments and clothing up to $525 per item

•Burial plot to $20,725 in lieu of homestead

•Health aids

•Jewelry to $1,350

•Car to $3,300

•Personal injury recovery to $20,725 (not to include pain and suffering or pecuniary loss)

•Wrongful death recoveries needed for support

Tools of the Trade
•Implements, books and tools of trade to $2,075

Wildcard
•$1,100 of any personal property plus any unused portion of homestead to be applied to any other property

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Written by Adam Peck

Expertise: Personal Injury

Adam J. Peck, ESQ is a principal with Peck Law Group, APC. In 2008, Mr. Adam Peck received his Juris Doctorate from Whittier Law School where he graduated Cum Laude. His practice is primarily dedicated to representing Elders, Dependent Adults, along with their loved ones and family members, who have suffered horrific personal injuries.