California 704 Exemptions in Bankruptcy
If you file for chapter 7 bankruptcy you can “exempt” certain property from liquidation. The legal effect of exempting property is to remove that property from the bankruptcy estate, and by extension, from the grasp of the Trustee. To exempt property on Schedule C you, as a California debtor, must chose between one of two exemption schemes specific to California: 703 exemptions and 704 exemptions. Both exemption schemes differ in the type and value of property that can be exempted. In general, 704 exemptions protect many specific forms of property and provide for a homestead exemption, whereas 703 exemptions protect fewer forms of property but provide for a “wild card” exemption where a specific dollar value can be spread out to exempt any property.
Claiming 704 Exemptions
You can claim 704 exemptions on Schedule C. On Schedule C you will list each type of property and cite the corresponding 704 exemption statute that exempts the property, including the dollar amount of your interest in the property you are claiming as exempt under the statute. Schedule C must be filed within 14 days of filing the bankruptcy petition. If you file Schedule C within the 14 day deadline creditors cannot object to your claimed exemptions after 30 days from the close of your meeting of creditors. However, if Schedule C is filed after the 14 day deadline creditors can object to your Schedule C exemptions at any time during your bankruptcy case. If you make a mistake on Schedule C you can fix that mistake by filing an amended Schedule C at any time before your bankruptcy case is closed.
To learn more about specific 704 bankruptcy exemptions read the following articles: California bankruptcy law can exempt reasonably necessary household furnishings, wearing apparel, and personal affects; building materials for a residence; reasonably necessary health aids; jewelry, heirlooms, and works of art up to a certain dollar value; the equity in a motor vehicle; and tools of the trade actually used in the debtor’s trade or business. These California exemptions can be used to protect your property in bankruptcy. To learn whether you can protect your property in bankruptcy visit santarosabankruptcy.us and contact our Santa Rosa bankruptcy attorney.