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What are the most common bankruptcy exemptions?

On Behalf of | Jul 13, 2022 | Bankruptcy Exemptions

As a citizen of California, you have the option to file for bankruptcy under the terms of Chapter 7. This type of bankruptcy arrangement is one in which you gather up all of your various assets and property. You then sell them off in order to raise the capital to pay off as much of your debt as possible. However, certain items of property can be exempt.

Your home and car can be exemptions

There are certain bankruptcy exemptions that you need to be aware of. The most common exemption that you may wish to make is for your home. At the moment, the federal homestead exemption is $20,000. This amount may be supplemented with state homestead exemptions that can offer you a much higher amount of protection.

The car that you own can also be exempted from your creditors under the rules of a Chapter 7 bankruptcy. Keep in mind that current state and federal laws will tend to cap off the total amount of the value of your vehicle. The amount of protection you receive will vary from little or nothing to somewhere near the full value of the vehicle.

State and federal exemptions have been increased

There has lately been a marked increase in the number of exemptions that are allowed under the terms of bankruptcy. As a result, you can now claim an extra level of protection for your property and other assets.

You may be able to claim exemptions for many items of personal property. These can include such things as clothing, jewelry, home furnishings, appliances, and many similar items. However, there may be a limit to the number of each item you can claim as well as a limit on the total amount of items that can be exempted.