Chapter 7 Bankruptcy Exempt Property
Personal residence $75,000 + homestead exemption
Single motor vehicle $3,300
Jewelry, heirlooms, art $6,750
Personal Property used in business $6,750 or $13,475 if jointly owned with spouse
Personal Injury award $20,725
Life insurance loan value etc. $11,075
There are multiple statutes with conflicting dollar amounts that overlap, so it is important to seek legal advice regarding property that may be exempt.
Under California statutes, the homeowner exemptions are $75,000 for a single person, $100,000 for a married person or head of household and $175,000 for a person 65 years old or older or a disabled person or a person 55 years old or older with an income less than $15,000 or $20,000 if married.
However, under new Federal Rules, the homestead exemption is capped at $125,000 if the property was acquired within 3 years and 4 months before the petition date and the debtor’s previous residence was in a different state.
Also, the value of the homestead exemption will be reduced to the extent that any of the equity in the property was obtained by taking nonexempt cash or selling nonexempt assets and applying the money to reduce the principle on the debtor’s home mortgage or make home improvements, thus increasing the homestead exemption amount.
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