California Bankruptcy Exemption Calculator
California Bankruptcy Exemption Calculator - Chapter 7 & Chapter 13 bankruptcy attorneys. Free consultation. Call (818) 514-7680.
California Bankruptcy Legal Services
Chapter 7 liquidation, Chapter 13 repayment plans, Chapter 11 business reorganization, and creditor rights representation. We help California residents and businesses navigate debt relief options, protect exempt assets, stop wage garnishments, and get a fresh financial start.
Free bankruptcy consultation: (818) 514-7680.
Fees, Costs and Case Results
Where representation is offered on a contingency basis there is no attorney fee unless we recover, and the firm advances case costs — filing fees, expert witnesses and medical records — which are then repaid out of any recovery. If there is no recovery, you owe no attorney fee. The specific terms that apply to a matter are set out in the written fee agreement for that matter.
Where this site refers to a verdict, settlement or court order, that result was dependent on the facts of that case, and results will differ if based on different facts. Past results do not predict or guarantee the outcome of any other matter, and no particular outcome is promised or guaranteed.
Frequently Asked Questions
- What is the difference between California exemption systems?
- California is unique - you must choose between System 1 (§704) or System 2 (§703). System 1 offers a high homestead exemption (up to $722,507) but no wildcard. System 2 has a low homestead ($36,750) but includes a powerful wildcard exemption (up to $40,650) that can protect cash, vehicles, or any property. You cannot mix systems.
- What is a wildcard exemption?
- The wildcard exemption (only in System 2/§703) is $1,950 plus any unused portion of the homestead exemption (up to $38,700 more), totaling $40,650 maximum. This can protect any property - cash, vehicle equity, bank accounts, investments, or personal items. It's extremely flexible and valuable for non-homeowners.
- How does the homestead exemption work?
- The homestead exemption protects equity in your primary residence. System 1 provides $361,076 base, $543,125 if 65+ or disabled, or $722,507 if 55+ and income is 150% of median. System 2 provides only $36,750. If you have significant home equity, System 1 is usually better. Non-homeowners should use System 2 for the wildcard.
- Are retirement accounts protected in bankruptcy?
- Yes, qualified retirement accounts (401k, IRA, pension) are fully protected in California bankruptcy under both exemption systems, with very high federal limits ($1.5M+ for IRAs). However, IRA withdrawals that become cash in your bank account lose this protection and must be covered by other exemptions.
- Can I change exemption systems after filing?
- No. You must choose System 1 or System 2 when filing and cannot change later. Married couples filing jointly must both use the same system. This is why accurate exemption planning is critical before filing - an experienced bankruptcy attorney should analyze which system protects more of your assets.
Contact Trembach Law Firm
Trembach Law Firm, APC
27001 Agoura Road, Suite 350, Calabasas, CA 91301
Phone: (818) 514-7680
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