A major concern of someone who is considering filing for bankruptcy is whether they can keep their property unless it is declared bankrupt. In most circumstances of any person's assets can be protected in bankruptcy through the use of bankruptcy exemptions. Bankruptcy Exemptions provide a list of items you can keep from filing bankruptcy. In California there are two groups of bankruptcy exemptions available to debtors: 703 or 704 bankruptcy exemptions. When the bankruptcy in California, you can use only one of two exemptions from bankruptcy. If you do not own a house or have little equity in your home, then in general, you must select the protections of 703.
If you are considering filing for bankruptcy and worries that you may be unable to maintain their property, understanding of 703 protections may resolve your concerns. 703 exemptions from bankruptcy protection to protect assets as follows:
Property
Homestead Protection – $ 20,725
Explanation: If the house you live in the equity below, contains the home can protect up to $ 20,725 be used to protect the value of your home, plus $ 1,100.00 (protection of wildcards) can be used towards equity in your home if not used to protect any other property.
Wildcard Protection – $ 1,100
Explanation: The protection of wild card can be used to protect any property you own up to the value of $ 1,100. If you have no value of your home or equity in your home is less than $ 20,725, you can use the unused portion of the protection of farm as a wildcard. Its total protection can wildcard total of $ 21, 825 if the home protection is not used at all.
Motor vehicles – $ 3,300
Explanation: You can protect the value of your vehicle up to $ 3,300. If your vehicle is worth more than $ 3,300 after deducting loans due on the vehicle, then you can use any amount remaining in the wild to protect the remaining equity in your vehicle. The number of motor vehicles of protection can only be used in a vehicle. If you have a second vehicle that requires protection because there is no equity, then you can use the wildcard unused.
Furniture, appliances, housewares, books, musical instruments, clothing, animals and crops – up to $ 525 per item
Explanation: You can keep all furniture, electronics, appliances and clothing that do not total more than $ 525 in value. The $ 525 in value would apply to each theme and relates to the liquidation-value of the pawn shop, not the replacement value of the elements. It is rare for a household item worth more than $ 525 in value. If there was an item on the value of $ 525 then you could use your wildcard used to protect it.
Jewelry – $ 1,350
Explanation: You can protect all the jewelry he owns, to the value of $ 1,350. If your jewelry is worth more than $ 1350 in the liquidation value then you can use any unused portion of the wildcards to protect the remaining value.
Tools, professional books – $ 2075.00
Explanation: If you have tools, equipment, machinery that is used as part of their profession or business, then you can use this exemption to protect $ 2075 in value of their tools, equipment, office supplies. If your tools or equipment worth more than $ 2075 then you can use any unused portion of the wildcards to protect the remaining amount.
Pensions and Retirement – ERISA qualified benefits needed to support pension or federal exemptions
Explanation: Most pensions and protection under this exemption as an IRA, 401K plans and profit-sharing retirement. You should have your kind of retirement account be reviewed to ensure there are no problems with their protection.In most cases, protection of pensions and retirement plans will not be a problem.
Bank accounts – protection of wild
Explanation: Any unused portion of wildcards can be used to protect the funds in checking and savings accounts.
There are several other forms of protection found at 703 bankruptcy exemptions. This reflects the majority of items that customers have questions about security. If you are considering filing for bankruptcy and relate to the protection of a particular element of contact with the characteristic of our firm and help you determine if the property is protected.
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