Exemptions
California has 2 systems of bankruptcy exemptions of which you must choose only one and the two may not be combined together. Each has different exemption provisions. Amounts effective as of April 1, 2010.
| ASSET | EXEMPTION | OPTION 1 AMOUNT ALLOWED | OPTION 2 AMOUNT ALLOWED |
|---|---|---|---|
| Homestead | Principal Residence (mobile home, boat, house, condo, etc.) | $50,000 (single & not disabled) $75,000 (Head of household) $50,000 (65 or older or disabled) $50,000 (55 or older, single, & earn less than $15,000 or married & earn less than $20,000) $50,000 (single & not disabled) |
$22,075 | Insurance | Disability or health benefits | Unlimited | Unlimited | Fidelity bonds | Unlimited | None | Fraternal society benefits | Unlimited | None | Fraternal unemployment benefits | Unlimited | None | Homeowners insurance proceeds exempted up to 6 months from receipt | $50,000 (single & not disabled) $75,000 (Head of household) $50,000 (65 or older or disabled) $50,000 (55 or older, single, & earn less than $15,000 or married & earn less than $20,000) $50,000 (single & not disabled) |
None | Life insurance proceeds (if clause prohibits use for creditor’s claims of beneficiary) | Reasonable & Necessary∗ | Reasonable & Necessary∗ | Matured life insurance benefits | Reasonable & Necessary∗ | Reasonable & Necessary∗ | Unmatured life insurance benefits | 100% $11,475 (loan value per spouse) |
$11,800 (loan value) | Misc | Inmate trust account | $1,425 $300 (restitution fine or order) |
None |
| Business or professional licenses | Unlimited | None | |
| Business partnership property | Unlimited | None | |
| Alimony & child support | None | Reasonable & Necessary∗ | Pensions | Tax-exempt retirement accounts | Unlimited | Unlimited | Traditional and Roth IRAs | $1,095,000 (per person) | $1,095,000 (per person) |
| County or public employees, county firefighters, & county peace officers | Unlimited | None | |
| Public retirement benefits | Unlimited | Reasonable & Necessary∗ | |
| Private retirement benefits | Unlimited | Unlimited | |
| ERISA-qualified benefits | None | Reasonable & Necessary∗ | Personal Property | Appliances, furnishings, clothing and food | Reasonable and necessary* | $550 (per item) | Social Security Benefits | Unlimited (if not commingled with other funds) $1,425 (direct deposit, single debtor) $2,150 (direct deposit, debtor & spouse) |
None |
| Other public benefits | Unlimited (if not commingled with other funds) $2,875 (commingled, single debtor) $4,300 (commingled, debtor & spouse) |
None | Building materials used to repair or improve home | $2,875 | None | Burial Plot | 100% (Debtor and spouse only) | $22,075 (in lieu of Homestead exemption) | Health aids (prosthetics, wheel chair, etc) | Reasonable and necessary* | Unlimited |
| Jewelry, heirlooms, artwork | $7,175 | $1,425 (jewelry only) | |
| Motor vehicle (any combination of aggregate equity, proceeds of execution sale, and proceeds of insurance or other indemnification for loss, damage, or destruction) | $2,725 (total for all vehicles) | $3,525 (interest in only one vehicle) | Personal injury and wrongful death causes for action | Reasonable and necessary* | None | Installment payments from personal injury or wrongful death | 75% exempted (at least) | $20,725 (excluding pain & suffering or pecuniary loss for personal injury) Reasonable and necessary* (wrongful death) |
| Public Benefits | Aid to the blind, aged, disabled, etc. | Unlimited | None |
| Financial aid to students | Unlimited | None | |
| Relocation benefits | Unlimited | Unlimited | |
| Unemployment benefits | Unlimited | Unlimited | |
| Union benefits from labor disputes | Unlimited | None | |
| Workers’ compensation | Unlimited | None | |
| Veteran’s benefits | Not available but exempt under Federal Law | Unlimited | Tools of the Trade | Personal property used in debtor's or debtor's spouse's trade, business, or profession | $7,175 (no more than $4,850 can be used for a commercial vehicle used in business) $14,350 (both debtor and spouse in same occupation) (no more than $9,700 can be used for a commercial vehicle used in business) |
$2,200 |
| Wages | Received within last 30 days prior to filing | 75% exempted 100% (if garnished or withholding order is in place) |
None (use federal non-bankruptcy wage exemption) |
| Public employee's vacation credits received in installments | 75% exempted (at least) | None | |
| Wildcard | For other assets or combined with assets listed above | None | $1,175 |
| Unused portion of either homestead or burial plot exemption | None | Varies |
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