• Spectacular!

    I liked your fast, friendly service. You were all knowledgeable in the area of bankruptcy. Your treatment of me as a client was spectacular! You were great at promptly responding to my questions and concerns. I loved that you provided courteous and quick responses to all my questions.
  • Highly Recommended!

    I have worked with Seth and he is the utmost professional in how he works with his clients. If you need an attorney you can trust I would highly recommend the Law Office of Seth Hanson.
  • Very Professional.

    Everyone was very professional and efficient. Seth, and everyone that I had contact with were very knowledgeable. I was very pleased with how we were treated by his staff. My questions were always answered promptly. I was very pleased with the service I received and would not hesitate to refer someone to your firm.
  • Non-judgmental.

    You were very open and answered all of my questions. You never made me feel like I was asking a dumb question. I was comfortable with your knowledge of the law. It was hard for me to make this decision to move forward in my life. Everyone was friendly to me and respectful. Non-judgmental. Every question I asked was answered promptly and appropriately. I would recommend you.
  • More Than Expected!

    I found the firm's representation to be more than what I expected. I was always kept in the loop, all my questions were answered (whether or not I asked more than once the same question), and I felt completely supported by the firm staff when going through this (at times) scary ordeal. Thank you again.
  • Very Impressed!

    I liked that you had very friendly, caring staff. You were all very knowledgeable. Your treatment towards me was excellent and you quickly responded to all my concerns. If a friend asked of your overall impression, I would say that we were very impressed and we would recommend you to them.

703 Vs. 704 Exemptions

703 vs. 704 exemptionsIn the last blog post we looked at the difference between a Chapter 7 bankruptcy and a Chapter 13 bankruptcy. In this post, we’ll dive into the two California systems of exemptions. The idea behind these exemptions is to protect certain assets from liquidation during bankruptcy. After all, how “freeing” would bankruptcy be if you lost everything you own upon filing?

703 vs. 704 exemptions

703 Exemptions

Most of my clients use the 703 exemptions, which refers to section 703 of the California Code of Civil Procedure. California is very generous with 703 exemptions. These exemptions can protect the following:

  • Equity in your home: $ 26,800
  • Vehicle: $5,350
  • Jewelry: $1,600
  • Household Goods: Fully protected (up to $675 per item)
  • Retirement Accounts: Fully protected.
  • Wildcard Exemption: $ 28,255 (depending on whether home equity is protected)

The “wildcard objection” might have raised your eyebrows. This exemption can be used to protect any asset. You could even have $28,255 in the bank fully protected under this exemption.

704 Exemptions

The other option is to use the 704 exemptions. Here’s what 704 exemptions offer in terms of protection:

  • Equity in Your Home: $100,000 for married couples and $175,000 if you are 65 or older.
  • Vehicle: $3,050
  • Jewelry: $8,000
  • Personal Injury Claims: Fully protected if the award is necessary for support.
  • Household Goods: Fully protected
  • Retirement Accounts: Fully protected
  • Wildcard Exemptions: None.

Lining things up like this helps show the pros and cons of both sets of exemptions. If you’re like many of my clients who are renting or don’t have a lot of equity in your home, the 703 exemptions can go a long way towards protecting you (especially the wildcard exemption). The main reason my clients go with the 704 exemptions is to protect the equity in their home.

When it comes to protecting your assets in bankruptcy, always follow the guidance of your Stockton bankruptcy lawyer. They know how to maximize your benefits and minimize any potential risks.

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