California Bankruptcy Law

Tips & Advice to help you make your decision on California Bankruptcy Law

Learning about California bankruptcy law can help you decide whether filing for bankruptcy is a good solution to your debt problems. While California follows federal bankruptcy guidelines, its exemptions are different from federal regulations. In some instances, you may be able to use federal exemptions in addition to California's state exemptions when declaring bankruptcy.

California allows you to use one of two systems of exemptions. The first system allows you to take a homestead exemption of $50,000 if you are single, $75,000 as a family, or $125,000 if you are over 65. Under this system, personal property such as clothing, food, and furnishings are exempt. Up to $5,000 worth of jewelry, heirlooms, and art may also be retained under this system.

The second system allows a homestead exemption of $17,425. A motor vehicle valued at $2,775 or less is exempt under this plan. Disability, child support, and alimony are also considered exempt assets when determining your ability to repay your debts.

If you are the sole owner of a business and applying for individual bankruptcy, the business will most likely be considered an asset. However, if you are in a partnership, parts of the business will be exempt. For more information on California bankruptcy law and its applications, browse Business.com and visit the provided links.


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The California Bankruptcy Network

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