California has finally created a state law exemption for cash in the bank. Californians filing bankruptcy no longer face loss of all the funds in their bank accounts when they choose California’s generous homestead, thanks to changes in exemption law. Two exemption statutes , new in 2020 , provide protection for cash in the bank […]
California Gets New Homestead
The California Legislature enacted a dramatic increase to the state’s homestead law at the very end of the legislative session in August. It became effective January 1, 2021. The dollar amount of the homestead increased to a minimum of $300,000 and a maximum of $600,000. Gone is the link between marital status or dependents. Every […]
California Homestead Works In Other States, Too
California homestead law drives bankruptcy exemptions even for those who no longer live in California. Strange, when the homestead statute was state law originally written for Californians. Two things have expanded its reach: bankruptcy “reform” and the concept of extraterritoriality. The third driver, of course, is mobility: we seem much more likely these days to […]
How Much Cash Can You Keep In Bankruptcy?
How much money can you keep when you file bankruptcy? It’s not as though you won’t have living expenses after you file bankruptcy. You need to know how you’ll manage and what you’ll have to manage with. Funding that fresh start is what exemptions are all about. We are talking here about California because exemptions, […]
New California Bankruptcy Exemptions
Californians filing bankruptcy got an increase in the exemptions that protect their assets on April 1, 2019. New: exemptions for money in the bank added in 20202 Every three years, the dollar amounts are adjusted for changes in the cost of living. Californians don’t get to protect possessions under the Bankruptcy Code’s exemptions. Instead, a […]
Double Dipping On Retirement Savings
Any time you can double your savings and protect your money from creditors is a good time of the year. The period between New Years and Tax Day is my favorite time of the year, just for that reason. You can make contributions to your IRA last year AND contribute to this year’s IRA allowance. […]
Bankruptcy Exemption Bill Changes More Than Dollar Amounts
An odd quirk in California’s bankruptcy exemptions was eliminated when the exclusion for pain and suffering damages was deleted by the legislature. Before January, 2013, someone filing bankruptcy could exempt money recovered for a personal injury up to $17,425. But no part of any recovery for pain and suffering associated with that injury was exempt. […]
