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    CA System 2 question

    On the exemptions list it states
    Personal Property
    Animals, Crops, appliances, furnishings, household goods, books, musical instrumnets, and clothing to $525 per item.

    My question is do you think this means per category or item. example I but a couch set that includes 4 pieces for 1600 dollars. the total is over 500 but each item is valued at 400?

    Just curious as our lawyer told us to sell one of the cars pay bills, taxes, etc then buy clothes and furniture since it is exempt.
    Thanks

    We will double check with the lawyer as well but I am really nervous about me or him making a mistake.
    Chp 7 Filled 2-21-08
    341 Hearing 3-24-08

    #2
    Originally posted by monkatom View Post
    My question is do you think this means per category or item. example I but a couch set that includes 4 pieces for 1600 dollars. the total is over 500 but each item is valued at 400?
    You may have purchased the couch set for $1600, but it certainly isn't worth that now. My guess is that $400 to $500 is all you could get for your whole used couch if you tried to sell it in the classifieds which would be under the exemption.

    Don't get into too much detail on your household items. Most US households have belongings that are worth about $3-4,000 total.

    Use classifieds and garage sale prices for your household items, not what they were purchased for or what you insure them for. This is likely why your lawyer isn't worried about you purchasing clothes and household things.
    I am not a lawyer and this is not legal advice nor a statement of the law - only a lawyer can provide those.

    06/01/06 - Filed Ch 13
    06/28/06 - 341 Meeting
    07/18/06 - Confirmation Hearing - not confirmed, 3 objections
    10/05/06 - Hearing to resolve 2 trustee objections
    01/24/07 - Judge dismisses mortgage company objection
    09/27/07 - Confirmed at last!
    06/10/11 - Trustee confirms all payments made
    08/10/11 - DISCHARGED !

    10/02/11 - CASE CLOSED
    Countdown: 60 months paid, 0 months to go

    Comment


      #3
      Thanks for the response. I think this may be a little different though as my lawyer said to sell our SUV and use the money from the sale for property taxes, etc. he also said we could go on a shopping spree as clothes are exempt and to buy new couches as furniture is exempt. I think it will be strange if we buy 1600 couches in December then file in January. won't the trustee think this is fishy?
      Chp 7 Filled 2-21-08
      341 Hearing 3-24-08

      Comment


        #4
        Has anyone used system 2 for California? i am still stuck on the wording of
        Animals, crops, appliances, furnishings, household goods, books, musical instruments and clothing to $525 per item
        So this is per item? as mentioned above we sold a car and have 1500 left over. lawyer says go buy clothes or furniture as that would convert a non exempt asset (cash) into an exempt asset (furniture) I guess I am worrying too much but I am afraid if i spent 1500 on furniture now and file in 30 days trustee will think
        A) we tried to pull a fast one on our creditors or
        B) we are lying about value of furniture since it will be new.
        Just curious as I feel we should try and give the trustee something but lawyer wants us to use this cash as he wants to use remaining wildcard exemptions to cover most of our tax returns.
        Thanks
        Chp 7 Filled 2-21-08
        341 Hearing 3-24-08

        Comment


          #5
          I am in CA and am confused on the systems as well. I am hoping to use the second choice.

          Comment


            #6
            Originally posted by Cali View Post
            I am in CA and am confused on the systems as well. I am hoping to use the second choice.
            Right there with you. We are in CA and just received our filing paperwork from the lawyer. I posted this on a different thread but on our Schedule C the totals were $114,839 ($121,519 before deducting exemptions). $88,464 is 401k & profit sharing.

            I'm so confused on the systems. What does "homestead" mean? Everything we own?? How much (from Schedule B) are you allowed to consider "personal property"????

            Another thing...our lawyer said we are allowed $25k personal exemption for the vehicles. We have a 2005 Tahoe worth $20k but a loan that we are reaffirming for $8900 ($11,100 value). A 1996 Chevy P/U worth $3k (if that) and a 2001 Mastercraft boat; damaged last July (at this point worth $7k being damaged). Totals are $21,100. He said we are under the limit...WHAT LIMIT?
            Last edited by dp1969; 01-26-2008, 12:05 PM.
            CHAPTER 7 FILED: 1/18/2008: 341: 2/19/2008
            DECLARED NO ASSESTS: 2/20/2008
            OBJECTION TO DISCHARGE DUE: 4/21/2008
            DISCHARDGED & TERMINATED:4/22/2008

            Comment


              #7
              Originally posted by dp1969 View Post
              Another thing...our lawyer said we are allowed $25k personal exemption for the vehicles. We have a 2005 Tahoe worth $20k but a loan that we are reaffirming for $8900 ($11,100 value). A 1996 Chevy P/U worth $3k (if that) and a 2001 Mastercraft boat; damaged last July (at this point worth $7k being damaged). Totals are $21,100. He said we are under the limit...WHAT LIMIT?
              Don't know about the rest of it.
              But as for "what limit".
              See the part I bolded in your qute.
              The $25.000 exemption is the limit.
              Anything above that is not covered by the exemption and would be an asset the trustee could seize for the estate.
              7/01/10 - filed!
              11/20/10 - discharged and closed

              Comment


                #8
                Thanks Tay! All of a sudden I was getting a bit overwhelmed with exemptions. Paying the lawyer big bucks to protect our assets so he should know what's best!!
                CHAPTER 7 FILED: 1/18/2008: 341: 2/19/2008
                DECLARED NO ASSESTS: 2/20/2008
                OBJECTION TO DISCHARGE DUE: 4/21/2008
                DISCHARDGED & TERMINATED:4/22/2008

                Comment


                  #9
                  My understanding is CA has $21K exemption

                  and you can slice and dice it anyway you want, cars, homes, furniture, or even CASH, bottom line is you can retain $21K of assets and no more. this was changed and increased recently because it was unfair to allow only homeowners $17K but not renters, and they just upped it to $21K.

                  Comment

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