California’s bankruptcy law provides the following 2 Schemes for claiming Chapter 7. Both of these personal bankruptcy schemes are listed below.

If you think that you are ready for bankruptcy, or considering personal bankruptcy, don’t despair. I’ve claimed chapter 7 once and it’s not the end of the world for you and your family.

You will regain your credit rating and your personal finances will rebound once you learn to handle your money in a more frugal and disciplined way. Take it from someone who has dealt with personal bankruptcy (and helped other people who have claimed chapter 7) you will adjust to this time in your life. This is just temporary and YOU ARE NOT A BAD PERSON – you are just learning as you go like everyone else on the planet.

If you are suffering from stress due to your impending bankruptcy, try to always remember that you are not alone. Repeat! You are not alone, and with the ever-increasing flood of individuals facing bankruptcy and foreclosure these days you are DEFINITELY not alone.

California Chapter 7 Bankruptcy Exemptions
Scheme #1

House/Home

• $50,000 – single
• $100,000 – married couple
• $75,000 – per family
• $125,000 > 65 years
• $125,000 < 55 years if;  single and earn < $15,000 yearly or married and make < $20,000 yearly.
• $125,000 for mentally challenged or physically challenged

Earning/Wages

• 75% of your earnings in the first 30 days of filing chapter 7 bankruptcy.

Public Benefits

• Union benefits, student financial aid, unemployment benefits, workers comp., and moving benefits.

Personal Belongings

• Appliances, clothing, food, burial plots, health aids, SS deposits.
• $2000 worth of building materials.
• $5000 worth of jewelry and estate jewelry.
• $1,900 worth of personal cars/trucks/vehicles.

Pensions

• Police, county employees, fire-fighters, private retirements, public employees – all retirement benefits and IRAs.

Insurance

• Disability, health benefits, homeowner insurance dividends for up to half a year.
• Your life insurance is exempt as long as it is deemed in the agreement “not allowed to be used to pay back debtors”.
• Life insurance if fully matured and needed for financial living support and non-matured life insurance for a lending value less than $4000.

Trade Tools

• Less than $5000 worth and twice as much if used for employment (earning money) by both parties of the marriage. Double if used by both spouses used them.

California Chapter 7 Bankruptcy Exemptions
Scheme #2

House/Home

• personal property used as residence < $17500

Personal Property

• household items < $450 per item
• all furnishings
• all health aids
• jewelry < $1200
• wrongful death settlement(s) if needed for support
• all books
• all clothing
• burial plots < $7500 in lieu of real estate
• cars/trucks/vehicles < $3000
• personal injury settlement(s) < $7500

Insurance

• all disability benefits
• all health aids for yourself and dependent(s)
• life insurance proceeds
• non-matured life insurance

Pensions

• ERISA qualified installments required for support payments

Public Benefits

• crime victim compensations
• public assistance
• social security
• unemployment
• veteran benefit plans

Tools Of Your Trade

• < $1800

Other

• alimony if required for support
• stock bonuses
• pension funds if required for support
• custody payments if required for support

Wages

• not exempt (saved the worst for last)