Exemptions in Chapter 13 Bankruptcy

The Bankruptcy process is intrinsically complicated in a lot of ways. One common misconception is that you have to give up all of your property once you file for it. This is not true. As a matter of fact, most Californian citizens have retained almost all of their properties after filing for Chapter 13 Bankruptcy. Exemptions in Chapter 13 Bankruptcy have made this possible.

If you are suffering from financial problems, are confused and doubtful about filing bankruptcy, the Law Office of Daniela Romero can offer prudent legal help.

Daniela Romero is one of California’s most reputable bankruptcy attorneys with extensive professional memberships. Specializing in bankruptcy since 1998, Daniela Romero knows the ins and outs of the bankruptcy code.

If you are thinking of filing for Chapter 13 bankruptcy and don’t know how it works, you need the assistance of an experienced and passionate bankruptcy lawyer. You can freely schedule an appointment so that we can share Chapter 13 bankruptcy information with you!

Why Do I Need a Bankruptcy Lawyer in California?

You must keep in mind that bankruptcy filings always concern your financial future. Choosing the right bankruptcy lawyer does not only help you but prevents future occurrences of conflicts. This step is crucial; you must thoroughly assess their qualities before hiring. The following are the excellent characteristics of a bankruptcy lawyer:

• Passionate. A reasonable bankruptcy attorney should be passionate about helping their clients. They should have a strong passion for community service. If someone loves what they are doing, every bankruptcy case can be accomplished no matter how complicated they can be. 
• Experienced. An experienced bankruptcy lawyer is equivalent to a knowledgeable bankruptcy lawyer. Get a lawyer with an impressive educational background and extensive years of practicing bankruptcy law. This gives you the assurance that they have been through many years of studying and handling complicated bankruptcy cases.
• Specialization. Specialization is one of the primary considerations that you should have. Choosing the right bankruptcy lawyer means choosing someone specializing in that practice area. You don’t want to hire someone who is just starting practicing bankruptcy or specializing in another field like criminal law.
• Availability. Your financial situation is at risk. You need an immediate answer to your financial troubles. The law firm’s availability is also an important aspect. You may consider checking if the law office offers a free consultation for your case evaluation or readily accessible legal advice.

Daniela Romero has been practicing bankruptcy since 1998. She obtained her Juris Doctorate in 1986 and is affiliated with various professional memberships. What sets Ms. Romero apart from the rest is that she is a firm believer in community service and giving back to the community that has been so good to her. Her momentous experience in handling complicated bankruptcy cases gave her substantial knowledge in the practice area. If you still have second thoughts about filing Chapter 13 Bankruptcy, you can freely schedule an appointment! 

What is Bankruptcy?

Bankruptcy is a legal process that helps debtors to obtain debt relief. Basically, the purpose of bankruptcy is to pay the debt by whatever assets or property you are willing to surrender or you can live without. In a Chapter 7 bankruptcy, all property is liquidated to pay off debts.

In Chapter 13 Bankruptcy, debtors can propose a repayment plan so long as they have a regular income to cover the monthly payment. Under this type of bankruptcy, you can keep your property. A Chapter 13 repayment plan also provides you the time to settle your debts within 3-5 years. 

Exemptions in Chapter 13 Bankruptcy

Filers may choose between state law in certain states or federal bankruptcy exemption. In California, bankruptcy exemptions shall be applied to keep your property. Among other states, California is the only one that uses two systems of bankruptcy exemptions. 

Generally speaking, debtors who have significant home equity will likely choose System 1 exemptions. On the other hand, debtors who do not have much home equity select System 2. Bankruptcy debtors can utilize the broad exemption to safeguard different sorts of valuable property. 

If you are married and planning to file jointly, other states permit you to double the amount of exemption. In California, spouses cannot have double exemptions.

California Bankruptcy Exemptions System 1

Following are the commonly used exemptions in a California bankruptcy filing:

California 704 Homestead Exemption

This exemption form safeguards a set amount of equity in your primary residence. In System 1, you can exempt personal or real property you own when filing the bankruptcy petition. This includes boats, mobile homes, stock cooperatives, planned development, community apartments, condominiums, etc., up to $600,000 – $704.730.

California 704 Motor Vehicle Exemption

This type of exemption safeguards your motorcycle, truck, car, and other vehicle types. The System 1 vehicle exemption is about $3,625 – 407.010 and exempt property such as: . 

• Personal Property
• Wages
• Retirement & Pensions
• Public Benefits
• Tools of Trade
• Insurance
• Miscellaneous

California Bankruptcy Exemptions System 2 

California’s System 2 exemption only applies in bankruptcy. Otherwise, you cannot use it to protect your property from creditors. In some instances, a bankruptcy court will not permit you to utilize System 2. As such, you really need a knowledgeable bankruptcy lawyer to help you out with options. 

California 703 Homestead Exemption

According to System 2 of California’s homestead exemption, it amounts to $31,950 for personal and real property used as a residence.

• Personal Property
• Retirement & Pensions
• Public Benefits
• Tools of Trade
• Alimony & Child Support
• Insurance
• Wildcard

Do I automatically get to keep exempt property? 

Generally speaking, no. In most cases, you may exempt your personal property, which is needed to maintain the household, such as clothing, furnishings, including your job, and some vehicle equity.

Call our Bankruptcy Attorney Now!

The procedure for filing Chapter 13 Bankruptcy is not straightforward. You have to determine its nature, consequences, and all the exemption laws. Given the complexities of the exemptions in a Chapter 13 bankruptcy, you definitely need the assistance of an experienced bankruptcy lawyer. If you or someone you know requires filing Chapter 13 Bankruptcy in Pasadena, California, the Law Office of Daniela Romero is the ideal choice. Other than bankruptcy, we also deal with personal injury, repossession, tax resolution , student loans, foreclosure, and credit repair. 

Our passionate, experienced, and knowledgeable lawyer, Daniela Romero, has extensive years of handling and resolving bankruptcy cases.