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Bankruptcy in California: Exemptions and Filing Guide

State-specific bankruptcy exemptions and filing information for California. These exemptions determine what property you can keep when filing Chapter 7 bankruptcy.

Data last updated: Jan 15, 2025

Key Takeaways

  • Homestead exemption: $300,000–$600,000 (varies by county median home price).
  • Vehicle exemption: $7,500 (System 1) or $29,275 (System 2).
  • Must use state exemptions (no federal option).
  • Attorney fees: $1,500–$2,500 (Ch. 7) / $3,500–$5,000 (Ch. 13) typical.
$300,000–$600,000 (varies by county median home price) Homestead exemption
$7,500 (System 1) or $29,275 (System 2) Vehicle exemption
No Federal option
$338 (Chapter 7) / $313 (Chapter 13) Filing fee

California Bankruptcy Exemptions

  • Homestead$300,000–$600,000 (varies by county median home price)
  • Vehicle$7,500 (System 1) or $29,275 (System 2)
  • Personal property$9,525 household goods (System 1)
  • Wildcard$1,550 plus unused homestead up to $36,525 (System 2)
  • Federal exemptionsNot available

Means Test: California Median Income

To qualify for Chapter 7 in California, your income must be below the state median or you must pass the means test showing no disposable income for creditors.

  • 1 person$72,940
  • 2 people$89,400
  • 3 people$97,628
  • 4 people$113,400

Filing Costs

  • Court filing fee$338 (Chapter 7) / $313 (Chapter 13)
  • Typical attorney fee$1,500–$2,500 (Ch. 7) / $3,500–$5,000 (Ch. 13)
  • Court districtsNorthern, Eastern, Central, and Southern Districts of California

California bankruptcy court

Related Resources

Frequently Asked Questions

  • Does California have two exemption systems?

    Yes. California offers System 1 (CCP § 704) which provides a large homestead exemption and is ideal for homeowners, and System 2 (CCP § 703) which offers a generous wildcard exemption and is often better for renters.

  • What is California's homestead exemption?

    Under System 1, the automatic homestead exemption ranges from $300,000 to $600,000 based on the median home sale price in the county. System 2 does not include a homestead exemption.

  • Can I use federal bankruptcy exemptions in California?

    No, but California's System 2 is modeled after the federal exemptions and provides similar or better protections.

  • How is the means test different in California?

    California has one of the highest median incomes in the country, so more filers may qualify for Chapter 7 than in lower-income states. The test compares your income to the California median for your household size.

Legal Disclaimer: FreeNetLaw provides general legal information, not legal advice. The information on this site is not a substitute for consultation with a licensed attorney. Laws vary by jurisdiction and change frequently. Always verify information with official sources and consult a qualified attorney for advice about your specific situation.

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