Exemptions: Do You Qualify For Federal or State Asset Protection
If you live in California and are asking for bankruptcy protection, you may be permitted to exempt certain assets from liquidation. Now, some states have chosen to create their own list of suitable exemptions, ignoring the federal exemptions or adding to the list. Many state exemptions include the following:
The goal behind these exemptions is to let people keep certain assets that are necessary to make a new financial start after they’ve chosen to go through the bankruptcy process.
Any property that’s been noted as being exempt is listed in the bankruptcy schedules and filed with the bankruptcy case. Credits can object to them during a creditors’ meeting. If no objections are made, the property is no longer seen as part of the estate.
When it comes to exemptions, this is one part of the bankruptcy law that states can vary on. Federal law has its own set of exemptions laid out in the bankruptcy code. However, every state has the choice to opt out and set their own exemptions. At present, there are 16 states that allow for the choice between federal and state exemption. Other states use their own exemptions list.
Before you file for bankruptcy protection in California, make sure you speak to one of our highly skilled and knowledgeable bankruptcy attorneys to see what your options are and what the state allows for exemptions at present.