Good news for Californians considering bankruptcy!
The California Assembly Bill 929 took effect on January 1, 2013. The new bill increases California Bankruptcy Exemptions, and helps people keep more property when filing for bankruptcy in California.
If you’re considering bankruptcy, it’s important to understand the purpose of California Bankruptcy Exemptions.
In Chapter 7 bankruptcy, bankruptcy exemptions determine what property you get to keep, i.e. your home, car, or personal belongings.
If property is exempt, you may keep it during and after bankruptcy.
If property is non-exempt, the Trustee assigned to your case is entitled to sell it to pay creditors.
[Read more about How to Discharge Debt through a Chapter 7 Bankruptcy, what the Role of the Trustee is, and how to protect your home using California Bankruptcy Exemptions]
California Bankruptcy Exemptions Increases:
|Tools of Trade||$2,200||$7,175|
What does this mean if you file for Chapter 7 bankruptcy?
To determine what property you get to keep, start by speaking with an experienced bankruptcy attorney. Exemption analysis and planning to maximize exemptions require skill and knowledge of different aspects of the law – combined with an in-depth analysis of your full financial situation to ensure that your property is safe from the Trustee and creditors.
If you would like more information about California Bankruptcy Exemptions and/or Chapter 7 bankruptcy, please contact us.