Whether you’re filing bankruptcy under Chapter 7 or 13 in California, you will get to keep most of your belongings and your home. That is, if you have a home worth keeping. Under the law, the keeping of assets is known as ‘exemptions;’ meaning the assets are exempt from being taken to pay your debts. These exemptions can be found in the California Code of Civil Procedure Sections 703 and 704.
On Schedule C of the bankruptcy forms, you will be required to state under which law you are applying your exemptions and you must use one or the other and cannot use both. This is important to keep in mind because even though Bankruptcy Law is federal law, here in California, we have our own unique sets of exemptions that we can apply.
Don’t lose your stuff in your attempt to eliminate your debts through bankruptcy by filing your own case. Now, more than ever before, you need to consult with your local bankruptcy lawyer to protect your rights.