Purpose of Chapter 7
- Provide the debtors with a fresh start by discharging their debts (as they existed as of the petition date.)
- Reserve a limited amount of assets for the debtor (Exempt Assets)
The first question most people ask is some version of the questions: What do I get to keep if I file bankruptcy? (Can I keep my car?, Am I going to lose my House?, My work tools?)
The answer of course depends on your situation as a whole, and how much equity you have in your home / car / jewelry. Below is a rough outline of the main exemptions for a Chapter 7 bankruptcy in California.
Bankruptcy Exemptions allow the debtor to keep some assets (such as vehicle) but these exemptions vary by state, in California there are two options. These options are known as the California (CCP) 703 & 704 exemptions. The 704 exemption is generally used when there is more than minimal equity in the primary residence.Continue Reading