New Bankruptcy Exemptions – Sb1099

On January 1^st, 2023 we rang in the new year to a new set of exemptions and rule changes that will benefit bankruptcy filers in California.

The following changes include:

1. Eliminating the need for spousal permission to use 703 exemptions when there is no joint interest in property that can be exempted as a homestead.
2. Increases the exemption for motor vehicles to $7,500.00 under BOTH 703 and 704 exemptions.
3. The bill prevents an auto lender from treating a bankruptcy filer as they have defaulted on their loan by filing bankruptcy. If a debtor is current on their loan payments, the bankruptcy itself cannot be considered a default.
4. Past due alimony and child support are now protected to the extent reasonably necessary for support of the debtor.
5. Deems exempt for settlements agreements arising out of a debtor’s employment to the extent reasonably necessary for support of the debtor, the debtor’s spouse or a dependent.
6. Deems exempt payments for wrongful death, under a life insurance contract, due to a personal bodily injury, or for loss of the decedent’s future earnings if the decedent was the debtor’s spouse.

For more information contact your Yuba City bankruptcy attorney at (530) 797-4402.