What assets are protected in California bankruptcy?
In System 1 (also known as § 704 exemptions), you can exempt real or personal property you reside in at the time of filing for bankruptcy, including a mobile home, boat, stock cooperative, community apartment, planned development, or condominium, up to $600,000 – 704.730.
What is the homestead act in California?
Homestead Exemption: A Partial Equity Protection in a Home The homestead exemption was designed to assure that a judgment debtor has a place to live even if they owe money to creditors by protecting a portion of the equity in a home in California from being used to pay a judgment lien on the property.
How does homestead exemption work in California?
A homestead exemption protects home equity from a homeowner’s creditors, up to a certain dollar amount. Collectors cannot acquire any funds within this amount to settle past-due debt. This applies if you file for bankruptcy or you experience financial difficulties after a divorce or your spouse passes away.
What personal property can be seized in a Judgement in California?
In California, every person can protect up to $6,075 in personal property, aside from your vehicle, from seizure for a debt. If you own a car, up to $2,300 of equity will be protected from judgment creditors.
What money is protected in bankruptcy?
This includes bank accounts (both checking and savings accounts), retirement accounts, real estate holdings, and yes, even cash. If you own any assets that aren’t protected by an exemption, the bankruptcy trustee can sell them and use the funds to pay your creditors.
Can you still Homestead in California?
Homestead Exemption in California In California, everyone who owns a home and lives in it is allowed to claim a homestead exemption, as SFGate reports: Single homeowners receive a $75,000 equity exemption. A head of household receives a $100,000 equity exemption.
Can creditors take your house in California?
Opposing A Levy (Seizure) Of Personal Property If you do not pay the judgment, the judgment creditor can garnish or “seize” your property. The judgment creditor can get an order that tells the Sheriff to take your personal property, like the money in your bank account or your car, to pay the judgment.
Can a creditor force the sale of my home in California?
A judgment creditor cannot force the sale of your home, unless the home can be sold for an amount that would “satisfy” (i.e. is greater than) the amount of the exemption and all prior liens.
How do I protect my bank account from a Judgement?
A judgment debtor can best protect a bank account by using a bank in a state that prohibits garnishment against banks. In that case, the debtor’s money cannot be tied up by a garnishment writ while the debtor litigates exemptions.
When you file bankruptcy do they check your bank account?
Your Bank Account Balance The bankruptcy trustee assigned to your case will want to review your bank account statements before your 341 meeting to verify the information you put on your bankruptcy forms matches your bank statements. The trustee will use these statements to get a glimpse into your financial history.
What exemptions are available for bankruptcy in California?
You have a choice of two exemption systems. One choice is the standard California state law exemptions found in Code of Civil Procedure 704. These are the exemptions applicable in state law collections as well as bankruptcy.
Can a married couple file a joint bankruptcy in California?
If you are a married couple filing together (a joint bankruptcy), some states allow you to double the exemption amount. But California is not one of these states. In California, married couples cannot double exemptions unless a particular exemption expressly allows it. The Trustee Can Object to Your Exemptions.
How long do you have to live in California to file bankruptcy?
However, you must live in California much longer before using California exemptions—at least 730 days before filing, to be exact. Otherwise, you’d use the previous state’s exemptions. But suppose you weren’t living in any particular state during the two years before filing for bankruptcy.
What happens to your property when you file bankruptcy in California?
When filing for Chapter 7 or Chapter 13 bankruptcy, California allows you to choose between two different sets of exemptions. Exemptions protect your property in any bankruptcy chapter that you file. What will happen to your nonexempt property will depend on the bankruptcy chapter filed.