Familiarizing yourself with California Bankruptcy Laws

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<h1>Familiarizing yourself with California Bankruptcy Laws</h1><strong> Author: <a href='http://www.articleseen.com/profile_Brenner Keehgan.aspx'>Brenner Keehgan</a></strong><br /><p>Things can happen during a person's lifetime that can result in unplanned financial issues. Sometimes, debts are so onerous and creditors are so unreasonable that people are forced to seek bankruptcy relief. If you are filing for bankruptcy in California, you must follow some specific California bankruptcy laws. Federally sanctioned supplemental exemptions are permitted to be used according to the bankruptcy laws in California and can be used with the allowed California State exemptions. According to California bankruptcy laws, a person must choose one of two categories of exemption. The two categories are simply known as System One and System Two. A debtor, with suggestions from someone who offers bankruptcy assistance, can choose which one of the two systems is right for them. According to the law in California, the System One option offers a homestead exemption of as much as $50,000 for a single person who is not disabled, as much as $75,000 for families, and as much as $125,000 for senior citizens. In addition, the following personal exemptions are permitted in System One: as much as $2,000 cash in the bank; as much as $2,000 worth of building materials; as much as $5,000 worth of jewelry and heirlooms; motor vehicles valued up to $1,900; burial plots; appliances; home furnishings; personal clothing; health related aids; food; and any money that comes from personal injury or wrongful death claims. Allowances are also made in System One for any kind of insurance claims; pensions; benefits, like unemployment compensation; workers' compensation claims; health aid claims; tools of the trade, which includes tools, uniforms, equipment, books and manuals required to continue in a trade; and wages exempt at a minimum of 75%. Under California bankruptcy laws, System One exemptions differ a great deal from System Two exemptions. For all homestead categories a maximum of $17,245 is allowed based on the System Two homestead exemption. The exemption is capped at $1,150 for jewelry and heirloom. Motor vehicles valued at less than $1,775 are exempt, while trade tools with a value of as much as $1,750 are exempt. The total amount of personal benefits permitted to be exempt under System Two is $17,425, although it provides for a wild card exemption of as much as $925. Wage exemption does not exist under System Two, with the only exemption allowed for ERISA-qualified pension benefits. Due to the complexity of these two exemptions under the California bankruptcy laws, people are well advised to retain a lawyer who specializes in this area of the law for assistance with bankruptcy. The lawyer will evaluate your total financial situation and recommend which of the two systems would work best for your situation when you must file for bankruptcy in this state.</p><strong>About the Author:</strong><br />A few years ago, Brenner Keehgan needed a <a rel="nofollow" href="http://www.sfvbankruptcy.com">Chatsworth bankruptcy attorney</a> as his circumstances put him in a foreclosure situation. Brenner suggests SFV Bankruptcy if you need help from a Burbank, Pasadena, or <a rel="nofollow" href="http://www.Burbankbankruptcyhelp.com">La Crescenta bankruptcy attorney</a> to get back on your feet.<p> Article Source: <a href='http://www.articleseen.com/Article_Familiarizing-yourself-with-California-Bankruptcy-Laws_13631.aspx'> http://www.articleseen.com/Article_Familiarizing yourself with California Bankruptcy Laws_13631.aspx</a></p>

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Keywords : San Fernando Valley bankruptcy attorney, Sylmar bankruptcy attorney, Pacoima bankruptcy attorney, Chatsworth bankruptcy attor,

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