What Assets Are Protected in Bankruptcy in California?

The looming fear of losing one’s assets often deters individuals struggling with debt from exploring bankruptcy as a solution. The question “What assets are protected in bankruptcy in California?” is a common concern for those considering this path.


In California, bankruptcy exemptions protect a variety of your assets, including:

  • Homestead: Up to $600,000 of equity in your home, depending on your county and household size.
  • Vehicle: $3,325 in equity across all vehicles.
  • Personal Property:
    • Household goods, clothing, and appliances “reasonably necessary” for your family.
    • Jewelry, heirlooms, and works of art up to $8,725.
    • Additional wildcard exemption of up to $31,950 to protect other property.


Consult with an attorney to determine which exemptions apply and how much of your property you can protect.

While these exemptions offer substantial protection, it’s crucial to understand how they interact with federal bankruptcy laws and your specific financial situation.

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Can Personal Loans Be Included in Bankruptcy in California?

Yes, personal loans can be included in bankruptcy in California, and they are usually dischargeable. This includes personal loans from banks, credit unions, friends, family, or employers. Unsecured personal loans, which are loans not backed by collateral, are eligible for discharge in both Chapter 7 and Chapter 13 bankruptcies.

Filing bankruptcy in California involves understanding the types of debt dischargeable, assets and exemptions, eligibility criteria, credit impact, costs, legal procedures, and the role of a bankruptcy lawyer in guiding individuals through the process.

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