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Chapter 7 California 704 auto exemption. Can wife and I share the exemption? How does it work? If joint filing & have2 cars

Riverside, CA |

So for example if we file a joint bankruptcy and each of us have a $2000 car can we exempt them both? Or what if we each had a $5000 car can we each take the exemption? please explain how it works

Attorney Answers 4

Posted

You can share the exemption but you can't double it.

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Posted

I agree with Mr. Whitaker, but I would add that it sounds like your are trying to do this on your own and that is a really bad idea. For most of my clients, the 703 exemptions are the better option and an experienced attorney can help guide you through this to minimize the risk of loss.

A woman called my office just yesterday that had made several mistakes in her bankruptcy. Those mistakes are causing her to lose a property with $100,000 of equity that she could have saved with the proper planning.

First, the firm is a debt relief agency according to the U.S. Bankruptcy Code. We help people file for bankruptcy. We also do other stuff and we do it well, but Congress wants me to post this notice. Second, nothing on this site is legal advice. You are not my client unless you enter into a written agreement signed by you and me.

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Asker

Posted

I hear you. That is why I am looking into it a bit. I have equity in the home so I can see already that 703s won't work.

Carl H Starrett II

Carl H Starrett II

Posted

Another option to consider is a Chapter 13. While most people don't want that, some people will do so to keep property that might be liquidated in a Chapter 13 if you have the income to support it. Some people use Chapter 13 to obtain favorable car loan modifications too. I urge you to at least contact an attorney in your area for a consultation. Most will give a free consultation.

Posted

The exemption applies to property that would otherwise go to the bankruptcy estate but for the fact that it is exempted. You and your wife can apply the exemption to your community and separate property listed in your bankruptcy petition and schedules.
Depending on your financial circumstances, there may be other exemptions or options available to you under the Bankruptcy Code to protect all of your property while receiving a discharge of your personal liability for debts. A thorough analysis of your income, property, assets, liabilities, debts and financial circumstances should be done to ensure you are categorizing your property and debts correctly and applying the correct exemptions appropriately.

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Note: The statements or comments provided herein are for general information purposes only and do not constitute legal advice as to any particular individual or instance. Samson & Associates does not represent you until a written fee agreement has been signed by you and a representative of Samson & Associates, and all fees listed in the agreement have been paid.

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Paula Brown Sinclair

Paula Brown Sinclair

Posted

Flagged for client solicitation TOS violation.

Posted

Yes, but you cannot exceed the total maximum. You can use the "wildcard" if you still have excess equity in any particular asset.

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Asker

Posted

If I am in 704 (due to having 50k in home equity) I believe there is no "wildcard" exemption, correct? I am just wondering if 2 cheap cars can be exempted using the 704 exemptions.

Stuart Gregory Steingraber

Stuart Gregory Steingraber

Posted

You are correct as to the non-availability of the wildcard exemption. That is only available under the 703 exemption scenario

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