California Bankruptcy
Chapter 7 bankruptcy laws in California are designed to eliminate debt and stop creditor harassment.
We’ve included information about Chapter 7 bankruptcy laws in California on this page, but if you want to take action today we can also help you connect with a local bankruptcy lawyer.
Complete the form below to connect with a local bankruptcy attorney. You attorney can explain how Chapter 7 exemptions and California’s other bankruptcy laws will impact your debt and your life. Get a free bankruptcy case evaluation with a lawyer in California near you.
Filing Chapter 7 Bankruptcy in California
If you’re considering filing Chapter 7 bankruptcy, it’s a good idea to understand the state’s bankruptcy laws and exemptions.
Chapter 7 bankruptcy is designed to work quickly to eliminate your debt related to credit cards, medical bills, utility bills and personal loans. But many people want more than just debt elimination. They want to protect their property and their future.
The bankruptcy laws allow for strong protections with what are known as “exemptions,” and they may play a big roll in your personal financial recovery.
California Bankruptcy Laws
Chapter 7 bankruptcy is designed to quickly and completely eliminate all of your unsecured debt. In exchange for this service, your creditors may be entitled to money from the sale of certain types of your property.
Fortunately, such sales are rare in personal bankruptcy. That is because California outlines specific property protections – property that cannot be sold during your case – in their bankruptcy code.
These laws are known as Chapter 7 exemptions.
California Chapter 7 Bankruptcy Exemptions
If you live in California and are considering filing Chapter 7 bankruptcy to get a fresh start and have your unsecured debt discharged, you may be anxious to know what property that you own may be exempt from liquidation.
Below we have provided an introduction to California Chapter 7 exemptions. For more detailed information, advice and insight on your Chapter 7 bankruptcy case, schedule an appointment to speak with a California bankruptcy lawyer.
When you speak with your California bankruptcy lawyer, he or she can explain important Chapter 7 bankruptcy exemptions in the state in detail including:
Homestead:
- Up to $75,000 for family members living with other, non-owner family members.
- Up to $150,000 for anyone 65-years-old or older, disabled, or 55-years-old or older with an annual gross income of less than $15,000 if single, $20,000 if married.
- UP to $50,000 for anyone not covered by other statutes.
Wages: 75 percent of all paid earnings.
Vehicles: Up to $2,300 of your equity in all vehicles.
Personal Property:
- All ordinary and necessary household furnishings, appliances, clothing provisions and personal property are 100 percent exempt.
- Up to $6,075 for jewelry and heirlooms.
- Up to $6,075 for tools used in your business or trade.
Questions? Talk to a California Chapter 7 Bankruptcy Lawyer
California Chapter 7 bankruptcy exemptions are complex. If you have questions, or want to maximize your protections, you may want to speak with a local bankruptcy lawyer. A Chapter 7 lawyer can answer your questions about how the state laws will affect you.
Let us connect you with a local California Chapter 7 bankruptcy lawyer. Simply fill out our free form and we’ll connect you with a nearby California bankruptcy attorney who can provide you with a free case evaluation.
Note: Keep in mind all laws are complex. If you need legal advice or want to fully understand how these laws affect you, please speak with a local attorney.
Laws may have changed since our last update. For the latest information on your state’s bankruptcy laws, speak to a local bankruptcy lawyer.