San Diego Attorney | FAQ's Question 2

Will I Get to Keep All of My Assets?

As a very general rule of thumb, you will be able to keep approximately $25,000 worth of assets through your Chapter 7 bankruptcy assuming that you do not have any equity in a home. If you owe money on your car, then the amount that you owe will offset the fair market value of the vehicle. For example, if you own a Honda Civic that is worth $12,000, but you owe $9,000, then only $3,000 will count towards that $25,000. In addition, you will likely get to keep all your assets in your retirement accounts.

California has two exemption schemes. The first is listed below and is for individuals without equity in a home. The second applies to individuals with equity in their home. It gets confusing, so we recommend that you give us a call to help you understand the specifics of your case.

Under the first exemption scheme, you can keep:

·         Your home, if you don't have more than $50,000 in equity in the house (today's value less costs of sale less payoff balances on all liens and mortgages); if single and not disabled or $75,000 for families if no other member has a homestead; $125,000 if 65 or older or disabled; $100,000 if 55 or older, single and earned less than $15,000 or married and earned less than $20,000 and creditors forced the sale. Sale proceeds are exempt for 6 months after received.
·         Up to $2,000 in building materials to improve your home
·         Your motor vehicle, if you don't have more than $1,900 in equity in the vehicle (today's value less costs of sale less payoff balances on all liens and mortgages).
·         Appliances, furnishing, clothing and food needed
·         Jewelry, family heirlooms and art up to a total of $5,000 in value
·         Burial plots
·         Health aids
·         Unemployment, disability, veterans', workers' compensation and social security benefits
·         Alimony
·         Retirement plan and life insurance proceeds
·         Business partnership property
·         Tools of your trade, up to $5,000 in value
·         Bank deposits from Social Security Administration up to $2000

Under the second exemption scheme, you can keep:

·         Your home, if you don't have more than $18,450 in equity in the house (today's value less costs of sale less payoff balances on all liens and mortgages).
·         Your motor vehicle, if you don't have more than $2,950 in equity in the vehicle (today's value less costs of sale less payoff balances on all liens and mortgages).
·         Appliances, furnishings. Books and musical instruments, up to $475 in value per item
·         Jewelry, up to $1,225 in value
·         Burial plots up to $18,450, instead of $18,450 in your home
·         Health aids
·         Unemployment, disability, veterans', workers' compensation and social security benefits
·         Alimony
·         Retirement plan and life insurance proceeds
·         Tools of your trade, up to $1,850 in value
·         Up to $925 "wild card" exemption of any property, unused portion of home exemption or burial plot exemption

If you have more equity in your house than you're allowed to keep, it's possible you could lose the home. In that case, you may wish to consider a Chapter 13 bankruptcy.

	Will I Get to Keep All of My Assets? As a very general rule of thumb, you will be able to keep approximately $25,000 worth of assets through your Chapter 7 bankruptcy assuming that you do not have any equity in a home. If you owe money on your car, then the amount that you owe will offset the fair market value of the vehicle. For example, if you own a Honda Civic that is worth $12,000, but you owe $9,000, then only $3,000 will count towards that $25,000. In addition, you will likely get to keep all your assets in your retirement accounts. California has two exemption schemes. The first is listed below and is for individuals without equity in a home. The second applies to individuals with equity in their home. It gets confusing, so we recommend that you give us a call to help you understand the specifics of your case. Under the first exemption scheme, you can keep: · Your home, if you don't have more than $50,000 in equity in the house (today's value less costs of sale less payoff balances on all liens and mortgages); if single and not disabled or $75,000 for families if no other member has a homestead; $125,000 if 65 or older or disabled; $100,000 if 55 or older, single and earned less than $15,000 or married and earned less than $20,000 and creditors forced the sale. Sale proceeds are exempt for 6 months after received. · Up to $2,000 in building materials to improve your home · Your motor vehicle, if you don't have more than $1,900 in equity in the vehicle (today's value less costs of sale less payoff balances on all liens and mortgages). · Appliances, furnishing, clothing and food needed · Jewelry, family heirlooms and art up to a total of $5,000 in value · Burial plots · Health aids · Unemployment, disability, veterans', workers' compensation and social security benefits · Alimony · Retirement plan and life insurance proceeds · Business partnership property · Tools of your trade, up to $5,000 in value · Bank deposits from Social Security Administration up to $2000 Under the second exemption scheme, you can keep: · Your home, if you don't have more than $18,450 in equity in the house (today's value less costs of sale less payoff balances on all liens and mortgages). · Your motor vehicle, if you don't have more than $2,950 in equity in the vehicle (today's value less costs of sale less payoff balances on all liens and mortgages). · Appliances, furnishings. Books and musical instruments, up to $475 in value per item · Jewelry, up to $1,225 in value · Burial plots up to $18,450, instead of $18,450 in your home · Health aids · Unemployment, disability, veterans', workers' compensation and social security benefits · Alimony · Retirement plan and life insurance proceeds · Tools of your trade, up to $1,850 in value · Up to $925 "wild card" exemption of any property, unused portion of home exemption or burial plot exemption If you have more equity in your house than you're allowed to keep, it's possible you could lose the home. In that case, you may wish to consider a Chapter 13 bankruptcy.
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