Most of our Escondido readers know by now that there are quite a few steps to take to get through the bankruptcy process successfully. In some cases, the filings are not all that complex, but nonetheless each step that the court outlines must be completed in a correct and timely manner. There are decisions to make along the way as well, and one decision that a person who files for bankruptcy in California will need to make is which set of bankruptcy exemptions to choose.
Any of our readers who have seen previous posts here regarding bankruptcy exemptions know that these exemptions allow a person who files for bankruptcy to designate certain assets that will not be subject to the bankruptcy proceedings. These assets are determined to be critical to a person's ability to foster the "fresh start" that the bankruptcy process encourages, so assets such as a personal vehicle, tools of trade or retirement savings are common bankruptcy exemptions.
In California, anyone filing for bankruptcy will need to choose between the state law bankruptcy exemptions and another set of exemptions that are more closely aligned with what is included in the federal bankruptcy laws. There are two different statutes that reference these exemptions, and there are several differences, but most people will probably rely on getting more information about which is the best choice for their individual circumstances before making a choice between the two.
Bankruptcy exemptions are an important aspect of the overall bankruptcy process. Making the right decisions regarding which bankruptcy exemptions to select can make the difference in a person's ability to get pointed in the right direction financially after a bankruptcy filing.
Source: www.courts.ca.gov, "Bankruptcy," Accessed Oct. 4, 2015