Each state has its own laws which determine the exemptions that an individual can claim in bankruptcy. California law requires that anyone who wants to exempt certain assets and property from bankruptcy proceedings must use the exemptions provided by state laws. In California, the federal exemptions in the U.S. bankruptcy codes cannot be used. Individuals may be eligible to receive “nonbankruptcy” exemptions on a portion or all of their wages, veteran benefits and Social Security benefits.
- Anyone considering bankruptcy should seek legal advice before taking any final decisions. A general rule is that those who file for Chapter7 bankruptcy protection can claim a portion or all of their personal or real property. This includes a part of the vehicle’s value, jewelry, art, furniture, equipment and other property.
- Also, they will be entitled to a percentage of wages earned within the last 30 days. Your bankruptcy trustee can liquidate all non-exempt assets and property to pay unpaid debt. Many people will be able to keep the majority of their property and possessions due to the exemption laws and the assistance of a skilled lawyer.
- Each bankruptcy case is unique, so it is important to discuss your situation with an experienced San Francisco bankruptcy lawyer as soon possible.
Summarized from an article by Kostopoulos Bankruptcy Law.
