Which of my assets are exempt from Creditors?

Exemptions are assets under sections 522 of the bankruptcy code. which are protected from creditors. This section allows specific personal, such as household goods, clothes and other personal belongings to be protected from creditor reach, up to a certain amount.

In California, bankruptcy rules allow debtors to either (1) take state exemptions for personal belongings, including a wild card exemption that can be applied to any property up to roughly $23,000.00 (This amount changes every so many years), or (2) federal homestead exemption to protected equity in a home.

Under the federal homestead exemption, a debtor can protect equity in a home up to $75,000 for an individual, $100,000.00 for a family and for individuals over the age of 65, the homestead exemption goes up to $150,000.00. This is essence would allow a person with no other assets except a home with specific amounts of equity in it, to file for bankruptcy and distribute no assets to their creditors.

The state and federal exemptions provide protection of assets to a specific dollar amount. Under that amount, creditors are legally unable to reach these assets and a debtor can eliminate all dischargeable debt, except for those specifically listed in Section 523 of the bankruptcy code.