One of the biggest fears of going into bankruptcy is losing all of your assets. Things like your car, retirement account, clothes, and other inexpensive professional tools are all things you might want to keep if you file bankruptcy. Luckily, certain assets are exempt if you do file for bankruptcy and we know what is protected before you file
What Is A Bankruptcy Exemption?
When you file bankruptcy, a trustee is put in charge of your case. They can sell off your assets, such as expensive cars, vacation homes, and luxury items, in order to pay your creditors if they are not exempt . A bankruptcy exemption will protect your property from being sold. What is the Importance of Exemptions in a Bankruptcy Proceeding?
Bankruptcy exemptions are important because they prevent you from ending up with nothing. In essence, they protect some of your basic assets from being taken away from you. There are several different exemptions to protect different types of assets, some up to a specific dollar amount.
In California, you can also take advantage of a wildcard exemption. A wildcard exemption allows you to protect up to $1,550 of any item you want safe from being sold. This amount can increase to a maximum of $30,000 if you don’t take advantage of the homestead protection, which allows you to protect any equity in your home.
What are Exempt Assets in California?
In California, different assets are protected up to different dollar amounts. Here are some of the assets you can claim as exempt if you file bankruptcy:
- Up to approximately $450,000 equity in residential property (not including vacation homes)
- Up to $5,850 equity in motor vehicles.
- Up to $1,750 in jewelry.
- Up to $8,725 in any professional tools necessary for doing your job.
- Social security benefits.
- Veteran’s benefits.
- Disability, illness, or unemployment benefits.
- Alimony or child support.
Schedule a Case Review
Are you considering filing for bankruptcy in Riverside County, California? At Bloom & Rudibaugh, we have an experienced team of attorneys that offer law services and legal counsel to individuals and businesses in the Hemet, San Jacinto, Perris, Temecula, Murrieta, and Riverside County, California areas.
Our team is prepared to help you successfully file for bankruptcy while protecting the assets most important to you. We have a deep understanding of bankruptcy exemptions and know how to protect your assets in the best way possible. To schedule a consultation with a member of our legal team, call our Hemet Law Office today at 951-652-1400 or our Murrieta/Temecula office at 951-296-5360.
