Bankruptcy Lawyers & Attorneys | Exemptions

If you are filing bankruptcy in California, you are allowed to exempt certain categories of assets from liquidation. Certain states have opted out of the federal exemptions and have their own list of acceptable exemptions. The state exemptions can include various amounts of furniture, clothing, tools, pensions, and homesteads.

The goal of the exemptions is to allow the individual to maintain certain assets that maybe needed to make a fresh financial start after they declare bankruptcy.

Any property that is determined exempt will be outlined in your bankruptcy schedules which are filed with the bankruptcy case. Creditors will have an opportunity to object to the exemptions at the meeting of the creditors. If there are no objections, the exempt property will no longer be considered property of the bankruptcy estate.

Exemptions are one area of bankruptcy law which varies somewhat from state to set. Federal low outlines a set of exemptions in the bankruptcy code, but each state has the option to “opt out” of the federal exemptions and can provide their own state exemptions. Currently, sixteen states have the option to choose between the federal and states exemption, the remainder of the states will have to use the state exemptions.

Prior to filing Bankruptcy in California, it is important to talk to an California Bankruptcy Attorney who can outline your current options for bankruptcy exemptions in the state of California.