California is the only state that has two sets of state exemptions. California System 1 is similar to other state exemptions. It allows a large homestead exemption and is therefore usually preferred by people who own their homes. System 2 is very like the federal exemptions in that it allows a debtor to use the homestead exemptions for other property instead of for a residence. In California, as in states that allow you to choose between the state and federal exemptions, you have to choose only one option. In other words, you can’t mix and match exemptions from the two systems.
The references to California statutes are to the California Code of Civil Procedure unless other code sections are specified. The amounts in this chart are not the same as the amounts in the statutes because these amounts are now updated every three years by the California Judicial Council. The next update will take place in 2010. Check the Judicial Council Website for current amounts.
| California Bankruptcy Exemptions - System
1 |
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| Assets |
Exemption |
State Statute |
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| Homestead |
Your residence, including land
and buildings, and personal property such as a mobile home, boat, co-op,
condo, or planned development: up to $50,000 for a single person who is not
disabled. Up to $75,000 for a family if no other member of the family has a
separate homestead. (A married person filing alone can exempt up to 1/2 of
this amount if the property is community property, but the full amount if the
property is held by the spouses as tenants in common.) Up to $150,000 for a
debtor who is over 65 or physically or mentally disabled. Up to $150,000 for
persons over 55 if single with an annual income of less than $15,000 or
married with an annual income of less than $20,000 and creditors try to force
sale of home. Proceeds received from a forced sale of home are exempt for 6
months after receipt. Spouses may not double these exemptions. |
704.710; 704.720; 704.730 |
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You have the option of filing a
homestead declaration to protect your allowable exemption or proceeds of a
voluntary sale (for a period of 6 months) from attachment or judicial liens. |
704.920 |
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| Insurance |
Life insurance (unmatured): all
cash surrender value and up to $10,775 of loan value. |
704.100(b) |
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Life insurance (matured): all
benefits necessary for support. |
704.100(c) |
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Fraternal unemployment
benefits: all. |
704.120 |
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Health or disability benefits:
all. |
704.130 |
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Fraternal benefit society
benefits: all. |
704.170 |
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Homeowners’ insurance proceeds:
up to homestead exemption amount for 6 months after received. |
704.720(b) |
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Fidelity bonds: all. |
Labor 404 |
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Life insurance payments: all if
there is a clause prohibiting the proceeds from being used to pay creditors
of the beneficiary. |
Insurance 10132, 10170, 10171 |
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| Miscellaneous |
Professional or business
licenses: all. |
695.060 |
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Trust fund for inmate of prison
or correctional facility: up to $1,350. (Married couple not allowed to
double.) |
704.090 |
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Property belonging to a
business partnership. |
Corporations 16501-04 |
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| Pensions |
Federal pension exemptions (see
federal exemptions). |
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Public retirement benefits:
all. |
704.110 |
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Private retirement benefits,
such as IRAs and Keoghs: all. |
704.115 |
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Public employee pensions: all. |
Government 21255 |
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County employee pensions: all. |
Government 31452 |
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County peace officer pensions:
all. |
Government 31913 |
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County firefighter pensions:
all. |
Government 32210 |
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| Personal Property |
Motor vehicles: up to $2,550 in
equity or the same amount in insurance payments for loss or damage. This
amount applies to individuals and married couples. It may not be doubled. |
704.010 |
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Appliances, furnishings,
clothing, and food: all. |
704.020 |
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Building
materials for repair or improvement: up to $2,700 for either a single person
or a married couples. |
704.030 |
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Art, heirlooms, and jewelry: up
to $6,750 for single person or married couple. |
704.040 |
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Health aids: all. |
704.050 |
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Social Security bank deposits:
up to $2,700 for a single person, $4,050 for a married couple. If the Social
Security funds are not commingled with other funds: all. |
704.080 |
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Other
public benefit bank deposits: up to $1,350 for a single person, $2,050 for a
married couple. |
704.080 |
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Cause of action for personal
injury or wrongful death: all. |
704.140(a); 704.150(a) |
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Recoveries for personal injury
or wrongful death: all needed for support; at least 75% of an installment
payment. |
704.140(b),(c),(d); 704.150(b),(c) |
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Burial plot: all. |
704.200 |
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Funds held in escrow: all. |
Financial 17410 |
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| Public Benefits |
Unemployment benefits: all. |
704.120 |
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Labor dispute benefits from
union: all. |
704.120(b)(5) |
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Worker’s compensation benefits:
all. |
704.160 |
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Public assistance benefits:
all. |
704.170 |
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Aid for disabled, blind, and
aged: all. |
704.170 |
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Relocation benefits: all. |
704.180 |
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Student financial aid: all. |
704.190 |
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| Tools of Your Trade |
Tools of trade, including
uniforms, implements, instruments, books, furnishings, and equipment: up to
$6,750 for a single person or $13,475 for a married couple engaged in the
same occupation. |
704.060 |
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Commercial vehicle as defined
by the Vehicle Code §260: up to $4,850 for a single person or $9,700 if used
by a married couple engaged in the same occupation. |
704.060 |
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| Wages |
Wages paid to the debtor within
30 days of filing for bankruptcy: at least 75%. |
704.070 |
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Vacation credits for public
employees: at least 75% of an installment. |
704.113 |
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| Wildcard |
None. |
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