One of the schedules of assets and liabilities which will be filed by the individual debtor in a bankruptcy proceeding is a schedule of “exempt” property.
Every individual considering filing bankruptcy has concerns about their options for protecting property in bankruptcy. Federal bankruptcy law provides that an individual debtor can protect certain specified property from the claims of creditors either because it is exempt under federal bankruptcy law or because it is exempt under the laws of the debtor’s home state (11 USC §522)(b)).
California has taken advantage of a provision in the bankruptcy law that permits each state to adopt its own exemption law in place of the federal exemptions. In other jurisdictions, the individual debtor has the option of choosing between the federal package of exemptions or exemptions available under state law. As a result, state law often determines whether certain property is exempt (protected) and may be kept by the debtor.
Bankruptcy Petition Preparers are specifically prohibited from providing any assistance in the selection of applicable exemptions (protection laws) for debtors; however we will provide you with valuable tools that will enable you to understand and learn about protecting property in Bankruptcy under California bankruptcy statutes.
CLICK HERE TO VIEW EXEMPTION TABLE AND PROPERTY PROTECTION LAWS