Chapter 7 bankruptcy is commonly referred to as “liquidation bankruptcy,” since some people must give up certain property and assets to be liquidated by the bankruptcy trustee as part of the process. However, this does not mean you will lose all of your property, as many people fear might happen. In fact, some filers are able to keep most if not all of their property with the help of a skilled California bankruptcy attorney. You should not hesitate to call Miranda, Magden & Miranda, LLP, to discuss the implications of a possible bankruptcy case today.
The good news is that the law does not aim to take everything away from Chapter 7 bankruptcy filers. For this reason, the law sets out exemptions that you can apply to protect certain property and assets. In California, you must use the exemptions set out by state law, as our state does not allow you to use federal exemptions.
California has two sets of exemptions you can choose between, and System 1 (also known as 704 exemptions) can protect:
System 2 (known as 703 exemptions) are not permitted in every bankruptcy court. Your attorney can advise you whether using System 2 is a possibility and whether it would be beneficial to your case. System 2 exemptions include:
As you can see, California law allows you to protect a significant amount of property and assets, so you should not worry that you will lose everything if you seek financial relief through Chapter 7 bankruptcy. The legal team of Miranda, Magden & Miranda, LLP is ready to help, so please contact us today for more information.
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