What are exemptions?

Exemptions are laws that allow Chapter 7 bankruptcy filers in California to keep certain property and assets that can otherwise be taken away by their creditors. Exemptions are used to protect a filer’s home, automobiles, furniture, and other personal belongings. Additionally, certain types of income may also be protected through exemptions. In California, individual filers may choose between the two sets of exemptions, either from state or federal law. The state of California allows for a wide range of exemptions, such as a homestead exemption of up to $75,000, an exemption for up to $2,500 in personal property, an exemption up to $2,300 for the contents of any one bank account, an additional $4,000 for a vehicle, and an exemption for life insurance and pensions. It is important to note that any assets that are not protected by exemptions can be taken by your creditors in a Chapter 7 bankruptcy. Additionally, some of the exemptions may have limits or other requirements, and a qualified bankruptcy attorney can help guide you through the process. While exemptions can protect some of your assets, it is important to consider all of your options before deciding to file for bankruptcy.

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