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Home > Exemptions
California Bankruptcy Attorney Stephen C. Hosford
Exemptions place certain essential property beyond the reach of most creditors, and help give debtors a fresh start.
Exemptions should be specific, and where a dollar value is indicated, should reflect the equity value remaining after all perfected liens are subtracted from the fair market value of the property.
A successful exemption requires an accurate and specific description of the property exempted, the amount of each encumbrance on the property, if any, and the statute permitting the exemption. Our attorneys will work closely with you to protect as much of your assets as the law allows.
The Federal government exempts certain retirement accounts from bankruptcy.
401(k), employee annuities, IRA accounts, employee defined benefit/contribution accounts, state and local government deferred compensation plans, qualified pension, profit sharing and stock bonus plans as defined by federal law can be exempted.
Federal law also exempts survivor and retirement benefits for specific professions such as federal civil service.
Our attorneys will confer with you to best protect your own retirement assets.
Federal law gives California the authority to create exemptions for bankruptcy. California has created two separate and exclusive sets of exemptions which are updated every three years to match the values of the Consumer Price Index. California's exemptions are set forth in Code of Civil Procedure, Section 703 and Section 704.
As of April 2010, CCP §704 granted exemptions for:
- $75,000 exemption for a homestead of a single debtor, $100,000 for a family unit and further exemptions for "low income" and elderly and disabled debtors
- One motor vehicle up to $2,725
- 100% of ordinary and necessary household furnishings and personal effects
- Jewelry, heirlooms and artwork up to $7,175
- Reasonably necessary and used tools of the trade, possibly including a motor vehicle, $7,175
- Traceably paid earnings
- A direct deposit account for Social Security benefits, up to $2,875 for one depositor or $4,300 for two depositors
- A direct deposit account for public assistance benefits, up to $1,425 for one depositor or $2,150 for two depositors
- 100% of unmatured life insurance policies, the loan value of a matured policy up to $11,475 for a single debtor and $22,950 for a married couple, and as much of a matured policy as is necessary for the support of the debtor and dependents
- 100% of health aids and prosthetics
- Personal injury, wrongful death cases and awards and settlements in an amount necessary for support of debtor and dependents.
- $2,875 of building materials for use on principal residence
- 100% of payable public retirement benefits
- 100% of public employee vacation credits
- 100% State Unemployment Compensation Disability Fund contributions, payable benefits and traceably paid benefits
- 100% private health insurance and disability benefits and traceably paid benefits
- Prisoner funds up to $1,425
- Workers comp benefits, payable public assistance benefits, payable relocation benefits, payable financial aid.
As of April 2010, CCP §703 granted exemptions for:
- Equity in the primary residence up to $22,075
- One motor vehicle up to $3,525
- A cemetery plot in lieu of the homestead, up to $22,075
- Household furnishing, wearing apparel, appliances, books, animals, crops, musical instruments, if no item has a fair market value greater than $550
- Jewelry and furs up to $1,425
- $2,200 in equity in 'tools of the trade'-books, tools, possibly a car
- 100% of professionally prescribed health aids
- 100% of unmatured insurance, up to $11,800 of the cash-value of a matured insurance policy
- Crime victim awards, wrongful death payments, insurance benefits, personal injury recoveries, personal injury settlements, future earnings losses awards to the extent reasonably necessary to support debtor and dependents.
- Unpaid Veterans benefits
- A "wildcard" exemption for equity in any item up to $1,175 in value, plus any unused portion of the $22,075 homestead exemption.
Courts have applied conditions and restrictions as to how and when these exemptions may be granted. Our attorneys bring the benefit of decades of expertise to help qualified debtors draft a successful petition.
Contact us by calling 714-730-8202 or on-line to schedule an initial consultation.
Hosford & Hosford, Inc., A Law Corporation
17821 East 17th Street, Suite 295
Tustin, CA 92780-2163
Telephone: 714-730-8202| Fax: 714-730-1959
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At the Orange County, California law offices of Hosford & Hosford, A.L.C., we provide experienced consumer bankruptcy representation to clients in cities including: Tustin, Irvine, Orange, Anaheim and Santa Ana.
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The information you obtain at this site is not legal advice. For legal advice, consult an attorney for advice regarding your own situation.
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