| California bankruptcy laws allow the use of federal | | | | food, health aids, jewelry and heirlooms to $5,000, |
| supplemental exemption in conjunction with | | | | motor vehicles to $1,900, and personal injury and |
| California exemptions. These laws are derived | | | | wrongful death claims), insurances of all kind, |
| from federal bankruptcy laws, from Title 11 of | | | | pensions, benefits (workers' compensation, health |
| the United States Code.The state of California is | | | | aid, and unemployment benefits), tools of trade |
| divided into four bankruptcy districts, each with a | | | | (tools, implements, materials, instruments, |
| bankruptcy court named after the district. They | | | | uniforms, books, furnishings, equipment, vessel |
| are California Eastern bankruptcy court, California | | | | and motor vehicle to $5,000), and wages to a |
| Northern bankruptcy court, California Southern | | | | minimum of 75%.System 2 differs from System |
| bankruptcy court, and California Central | | | | 1 in the following exemptions: homestead to |
| bankruptcy court. California bankruptcy laws give | | | | $17,425 for all categories; jewelry to $1,150; |
| the option to pay secured loans, allowing the | | | | motor vehicle to $2,775; personal benefits to |
| property to be repossessed or purchased at its | | | | $17,425; tools for work to $1,750; pension |
| current fair market value. Exemptions are shown | | | | benefits only for ERISA-qualified benefits; no |
| in the California bankruptcy exemptions | | | | wage exemption; and wild card exemption to |
| chart.California bankruptcy laws allow different | | | | $925.The new California bankruptcy law that has |
| sets of exemptions, mainly System 1 and | | | | taken effect from October 17, 2005, states that |
| System 2. One has the right to choose a suitable | | | | if you want to take advantage of California |
| system. In System 1, the exemptions available | | | | bankruptcy exemptions, you must be a |
| are homestead (to $50,000 if single and not | | | | permanent resident of the state of California for |
| disabled, to $75,000 for families, and to $125,000 | | | | the two-year period prior to filing bankruptcy. |
| for senior citizens), personal properties (bank | | | | Otherwise, you must spend most of the 180 |
| deposits to $2,000, building materials to $2,000, | | | | days prior to these two years in the state of |
| burial plots, appliances, furnishings, clothing and | | | | California. |