Property Exemptions

Many people worry about losing property when considering filing for bankruptcy.  In such cases, it makes sense to do a cost-benefit analysis.  To do this, you’ll have to look at what property will be protected in a bankruptcy and what property will be at risk of being liquidated.  To help you know what you’ll be able to keep, let’s take a brief look at California’s Bankruptcy Exemptions.

CCP 704 and CCP 703

There are two sets of bankruptcy exemptions under California law: CCP 704 and CCP 703.  You can choose only one of these sets.  An attorney will be able to help you decide which of these best suits your needs.  Each section is broken up into several different categories.  These include Homestead, Insurance, Misc., Pensions, Personal Property, Public Benefits, Tools of Trade, Wages, and, for the 703 exemptions, a Wild Card exemption.  Each category protects distinct types of property.  The qualifications and amount protected in each of these categories varies depending on which section you choose (704 or 703).  For example, the 704 exemptions provide a much greater protection of home-equity in the homestead category while the 703 offers a “wild card” exemption if no homestead exemption is used.  There are many more exemptions and your attorney can help you review these.  Each section has its ups and its downs.  Figuring out which to choose can require a great deal of thought and can be quite stressful.

To maximize how much of your property is protected and to rest assured that you are making the right decision, contact your local Yuba City bankruptcy attorney at (530) 797-4402 for a free consultation.