What type of property can I keep after filing for Chapter 7 Bankruptcy?

Filing for Chapter 7 Bankruptcy in California can provide a fresh start for individuals by allowing them to get out of debt and make a new financial start. As part of the bankruptcy process, certain property can be exempted and kept by the debtor. In California, Chapter 7 bankruptcy allows individuals to keep certain amounts of equity in their home, car, or other property. In addition, an individual is allowed to protect a certain amount of personal possessions and property, such as clothing, furniture, and jewelry. Any property that is occupied by the debtor as their primary residence is usually exempt from the bankruptcy process and can be kept by the debtor. The California bankruptcy code provides two forms of exemptions—federal and state. The federal exemptions are more generous and are available to all Chapter 7 bankruptcy filers in California. These include certain amounts of equity in a car, household goods, appliances, and tools of a trade. The state exemptions are more restrictive and are meant to provide limited help in protecting a debtor’s property. These include an exemption for certain amounts of equity in a house, bank account, and other property owned by the debtor. In general, individuals in California filing for Chapter 7 bankruptcy are allowed to keep certain amounts of equity in their home, car, and personal possessions. However, the full list of exemptions and the amounts allowed vary from state to state, so it’s important to consult with an experienced bankruptcy attorney to determine what you are allowed to keep.

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What type of property can I keep after filing for Chapter 7 Bankruptcy?

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