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CA Ch7 exemptions code#?

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    CA Ch7 exemptions code#?

    I am unemployed, with $4538 in total assets ($1000 cash, and personal property), filed in pro per 2 months ago. At my 341 meeting, the trustee kicked back my Schedule C for amendment (I filled it out improperly)... plus a few new forms. I HAVE to return all this by Wednesday morning (43 hours -- yes, I procrastinated, dammit!).

    My few possessions fall under 11 USC 522 (d) (3, 4 & 6), and since I have less than $300 in business furniture, for example, I just lumped it all as a single exemption.

    Similarly, I lumped my home entertainment gear (TV, stereo, VCR), valued at $400, but I can't seem to discern which section of the code applies!

    Also, I have ~$300 in SCUBA gear, but can't find what section of the code applies there, either.

    Finally, I can't find a section of the code that addresses my $1000 cash on hand... which I obviously need to live on!

    The Trustee seems very forgiving, but I have to put *something* down, since these are items that were on my Schedule B, filed 2 months ago.

    Thank you for your wisdom and guidance in this frustrating moment!
    Ric

    #2
    I'm not a Californian, but as I recall, California has two systems for Exemptions. System I and System II. (Now I'm not looking anything up right now, just trying to help real quick.)

    I believe System II is better if you don't have any real property (real estate) you're trying to protect. I thought that the unused homestead exemption could be used as a Wildcard and was like $20K or so. Seems like more than enough to cover your assets.

    When you fill out Schedule C, you're supposed to list your exemption amount AND the section of LAW which allows you to claim it. So, look up the unused homestead exemption in System II and use that part of California Code as your "authority" to exempt the property.

    Also, I believe that California, like Florida, opted out of Federal Exemptions, so you can not use FEDERAL EXEMPTIONS or any part of 11 USC as your "authority" for the exemption.
    Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
    Status: (Auto) Discharged and Closed! 5/10
    Visit My BKForum Blog: justbroke's Blog

    Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.

    Comment


      #3
      I CAN'T use the USC, I MUST use the CA code? All this research and decyphering of the law was a waste of my time?

      Does this also cover my cash?

      justbroke, I DO appreciate your heads up... but if anyone in CA has experience with/knowledge about this, I'd feel better about going in this different direction!

      I haven't been able to find anything CLEAR elsewhere on the net. ;-(

      Comment


        #4
        I did CA System 2 that has a great wildcaed. But System 2 is for no house/surrendering house. Do you have a house?
        Filed C7 Aug 31 2008
        341 Oct 8 2008
        Discharged Dec 9 2008

        Comment


          #5
          And this one is clear:

          Filed C7 Aug 31 2008
          341 Oct 8 2008
          Discharged Dec 9 2008

          Comment


            #6
            Originally posted by BROKENN View Post
            I did CA System 2 that has a great wildcaed. But System 2 is for no house/surrendering house. Do you have a house?
            Follow Brokenn's Advice as Brokenn has been through the California system. As I wrote, System II is better if you are not keeping a house. There are plenty of resources on the Net, and especially HERE at BKForum!

            To give you a head start, California 703.140(b)(1) is what give you the "homestead" wildcard exemption of $20,725. (Property, real or personal, used as a residence: up to $20,725. Any unused portion of this amount can be applied to any property.)

            Combine that with the Personal Property exemption of 703.140(b)(3) for furnishings, appliances, household goods, books, musical instruments, clothing, animals, and crops: up to $525 per item. There is also the Jewelry exemption up to $1,350 total (703.140(b)(4)).

            NOTE: use up your ACTUAL exemptions before touching the WILDCARD. For example, use up the furnishings, appliances, household goods... up to $525 per item, BEFORE consuming the huge homestead exemption or the wildcard exemption.

            Here is System 2 (http://bankruptcy-law.freeadvice.com...emptions-2.htm)
            Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
            Status: (Auto) Discharged and Closed! 5/10
            Visit My BKForum Blog: justbroke's Blog

            Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.

            Comment


              #7
              Whew! Thanks for pointing me in the right direction!!!

              OK, now that I've had a chance to look through all those references and decipher them, here's what I've got:

              household furnishings, clothing, TV, stereo, books, CDs, etc. etc., all worth less than the specified $525 apiece, for an aggregate of $2,000 (703.140 b 3)

              a watch, worth $20 (704.040, jewelry limit $1350)

              office furniture, laptop, camera, worth $700 (703.140 b 6 "tools of the trade" limit $2075)

              SCUBA gear, worth $300 (703.140 b 5 "wildcard" limit $1100)

              Am I on the right track so far???

              That leaves me with cash on hand (not in the bank), which I can't find an exemption for, but it exceeds the aggregate wildcard limit.

              An insurance company totalled my car (accident was 3 weeks prior to filing Ch 7), and between their payment and a few $$ I got by selling the junk, I received $3125 AFTER BK filing. (I've used 2/3 of it to pay rent.)

              * According to 703.140 (b) (11) (D), a pecuniary loss is allowable to $20,725.
              * According to 703.140 (b) (2), "interest in one motor vehicle" is $3,300.
              * According to 704.010, I'm allowed $2,550 for a car settlement.

              Obviously, I don't HAVE to say how much cash I have, except that I originally claimed the car 2 months ago, and I have to account for the settlement.

              The question is HOW do I claim the exemption???
              Under #1, 2 or 3 above?
              If it's #3, do I dump the rest into the Wildcard exemption?
              Will they give me a problem about spending part of the settlement already?

              Other than this, I still have to sort out one other bit of info, fax everything back to the Trustee, and IF she can review it before Wednesday AM, and all is OK, then I don't have to appear again and the hearing won't be continued. (And I assume I stay on the Trustee's good side!) I'm hoping I can get through all this tonight!

              Thanks again!
              Ric

              Comment


                #8
                Apologies! I just re-read your messages...

                No, I don't own real property.

                Going back through what I thought I JUST figured out, leaves me uncertain. ;-(

                I made a mistake on the watch, it should be 703.140 (b) (4)!

                But the Wildcard seems to be indicated in several parts of the code: 703.140 (b) (1), also (5) and (11) (D). I'm confused!

                Also, the URL you provided, justbroke, gave this cryptic info:
                Homestead
                Property, real or personal, used as a residence: up to $20,725. Any unused portion of this amount can be applied to any property. 703.140(b)(1)

                Wildcard
                Any property: up to $1,100. 703.140(b)(5)
                Any property: unused part of homestead or burial exemption. 703.140(b)(5)

                Do I use the (5) first, then (1)? Obviously, it would behoove me to use 703.140 (b) (2) *IF I CAN* for the car settlement (which is my cash on hand, or what's left of it).

                Some time in the next few months, I may get a PI settlement, of which about 1/3 will go to medical, 1/3 to attorney, 1/3 to me ($3-5,000), and as I understand, if it happens within 180 days of the completion of the case, I have to report it, and it's subject to the Trustee's ruling. Because of this, and because I don't know if only MY portion of the settlement would be subject, I want to reserve all of the $20,725 that I can....

                Comment


                  #9
                  You're doing fine now.

                  Looks like for your appliances, furniture and jewelry, you're doing okay.

                  You can use the Wildcard Exemption (703.140(b)(5)) or the Unused Homesrtead Exemption (703.140(b)(1)) to protect your cash.

                  Your questionable area is the insurance proceeds from your car. First, you don't have a vehicle (anymore, right?) so you can't use 703.140(b)(2). Please note that you cannot combine System I with System II! It appears that you're trying to use 704.010 from System I along with your System II exemptions. You must choose which system you will use. You can only select and use one. Since with your cash and other assets, you may be able to squeeze everything else (including the insurance proceeds) -- using System 2 -- into your generous $20K Homestead Exemption (703.140(b)(1)).

                  Always try to use an Exemption category which matches before using up a wildcard or the unused homestead exemption. For example, don't use the wildcard on the watch, use the jewelry exemption just like you did. That way, you make sure you have more than enough value in the wildcard and unused homestead exemption to cover things like cash.

                  That's just my evaluation.

                  (Also, for personal injury, that's covered by 703.140(b)(11)(D) and 703.140(b)(11)(E)... and is valued up to $20,725. This is not part of the wildcard or the homestead exemption. So long as you're under that amount on the settlement (after paying your lawyer)... you can use those two code sections for the exemption. If you have a PI settlement coming, you need to disclose it in your schedules.)

                  703.140(b)(11)(D),(E)

                  Recoveries for personal injury of the debtor or a person on whom the debtor depends: up to $20,725, not including pain and suffering or pecuniary loss.
                  Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
                  Status: (Auto) Discharged and Closed! 5/10
                  Visit My BKForum Blog: justbroke's Blog

                  Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.

                  Comment


                    #10
                    Thanks, justbroke! Things are s-l-o-w-l-y becoming clearer! I'm really a fairly smart person, but one would think the bankruptcy code is the "attorney full employment act!" (Wait! Did I say that?) ;-)

                    I'm thinking that the car settlement (and the cash on hand that's left of it) should be under 703.140(b)(1), since it exceeds the $800 left of the $1,100 "wildcard."

                    The PI settlement isn't certain, since I JUST saw an attorney for the first time 6 days ago, so I don't know what to claim there. But I understood that I have to report any such settlement that occurs within 180 days from the last date creditors can object (12/8/08), so it will get addressed. What I deduce from the explanation of that code is it's also not for lost wages (pecuniary loss) or "pain and suffering," and if the attorney's fees are also excluded, all that's left is the medical compensation (which I don't receive anyway?)

                    Additionally, Schedule C has several checkboxes about 11 USC 522, which I assume won't apply at all?

                    Comment


                      #11
                      Damn! I read, re-read, and read more, and something new comes clear:

                      703.140(b)(1) says it's for "real ... or personal property ... (used) as a residence ... or burial plot."

                      That's not a car settlement or cash on hand. And my reading of both (11) (D) and (E), they're not applicable, either.

                      So I'm still stuck how to categorize this exemption!!!

                      (sorry to drag this on... I'm exhausted and stressed!) %-]

                      Comment


                        #12
                        Originally posted by d-i-y amateur View Post
                        Damn! I read, re-read, and read more, and something new comes clear:

                        703.140(b)(1) says it's for "real ... or personal property ... (used) as a residence ... or burial plot."

                        That's not a car settlement or cash on hand. And my reading of both (11) (D) and (E), they're not applicable, either.

                        So I'm still stuck how to categorize this exemption!!!

                        (sorry to drag this on... I'm exhausted and stressed!) %-]
                        Use 703.140(b)(1). Cash is "personal" property.

                        Also, just because a particular exemption isn't fully allowed by teh exemption... e.g. you have $800 left from the Wildcard... doesn't mean you can't use it.

                        For example, say you had $5,000 in Cash. Then you'd put both 703.140(b)(6) and 703.140(b)(1) as the Authority. That would mean the first $1,100 comes out from 703.140(b)(6) and the rest from 703.140(b)(1). Remember, 703.140(b)(5) reads that if you don't use the 703.140(b)(1) property exemption for real property, you can use it for any other personal property.

                        (I did this myself, as Florida has a similar "wildcard" and "unused homestead" exemption.)
                        Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
                        Status: (Auto) Discharged and Closed! 5/10
                        Visit My BKForum Blog: justbroke's Blog

                        Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.

                        Comment


                          #13
                          ...and re-read it a couple more times!!!

                          OK, justbroke, I didn't decipher it the way you explain, since section 1 says it's for real property (a house), but it sounds like you're saying I take the balance ($800) of sub-whatever-#5 from the $1,015 I have, and the other $315 from #1.

                          Now, do I attach an explanation of the remainder of the $3,125 from the auto property settlement ($2,110) as a "continuation sheet," e.g. $3,125 from totalled car, less $2,110 spent on rent and other expenses, leaving $1,015 cash on hand...?

                          Do I NOT check any of the boxes at the top of the federal form (522 b ...etc.)?

                          Thanks much!!!
                          Ric

                          Comment


                            #14
                            Originally posted by d-i-y amateur View Post
                            ...and re-read it a couple more times!!!

                            OK, justbroke, I didn't decipher it the way you explain, since section 1 says it's for real property (a house), but it sounds like you're saying I take the balance ($800) of sub-whatever-#5 from the $1,015 I have, and the other $315 from #1.

                            Now, do I attach an explanation of the remainder of the $3,125 from the auto property settlement ($2,110) as a "continuation sheet," e.g. $3,125 from totalled car, less $2,110 spent on rent and other expenses, leaving $1,015 cash on hand...?

                            Do I NOT check any of the boxes at the top of the federal form (522 b ...etc.)?

                            Thanks much!!!
                            Ric
                            First, remember that the Schedules are a snapshot in time. They represent what your situation was at the time of filing.

                            So, if, on the day you filed, you had all of the Settlement in cash, then you'd put that amount (the whole thing). If, on the day of filing, you already spent $2K on rent, then you'd put only what cash you had left. Understand?

                            Also, since your State opted out of the Federal Exemptions (11 USC 522(d)), you need to check the box for 11 USC 522(b)(3).
                            Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
                            Status: (Auto) Discharged and Closed! 5/10
                            Visit My BKForum Blog: justbroke's Blog

                            Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.

                            Comment


                              #15
                              Thank you! Thank you!!! I appreciate your help.

                              I'm completing the papers this morning and faxing them. Fingers crossed that the Trustee reviews them by tomorrow morning, and decides that they're sufficient (so that I don't have to appear in Santa Rosa again, nor is this continued, but stays on timeline!).

                              ...The car was listed on my initial B (and elsewhere) with estimated settlement value. Since I got the car settlement between my filing date and now, and the Trustee asked me to amend both Schedule B and C, I'm accounting for the change in circumstances/additional inflow. I hope I didn't misunderstand!

                              This Trustee is apparently the nicest one in the bunch, so I'm lucky in that respect.

                              Happy Holidays!

                              Comment

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