California Bankruptcy Exemptions – System 2

Federal bankruptcy exemptions available? NO

California is often considered the maverick state, and its bankruptcy laws are no exception. California has not only opted out of the federal bankruptcy exemptions, but has also created two sets of exemptions of its own; one set is similar to the federal but not the same. This is California Exemptions-System 2. Most state exemptions give a major advantage to people who own their residences. In both the federal exemptions and California System 2 (CCP 703), people who don’t own their homes can use some of that exemption to keep other property. California allows people filing for bankruptcy to use over twice as much as the federal exemptions for a wildcard.

Filers can choose between the two state systems. But they can’t use both systems at the same time. The exemption amounts in System 2 are the same for both single and married people. Married couples aren’t allowed to double the amounts.

taken from - http://bankruptcy-law.freeadvice.com/bankruptcy-law/california-bankruptcy-exemptions-2.htm