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Chapter 7 exemptions in California. Which exemptions would go toward exempting a potential Employment lawsuit? just wildcard?

Riverside, CA |

There is a lawsuit with a former employer pending (wrongful termination). Is there anything besides the wildcard that could help exempt potential proceeds?

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Attorney answers 3


Possibly 75% of unpaid wages could be exempted under 15 USC §1673.


Consult with counsel before filing bankruptcy. The answer to your questions depends on the nature of the claims asserted, but, generally speaking, yes, the wildcard would be the applicable exemption. If you file bankruptcy be sure to disclose the claim, failure to do so will result in your loss of standing to bring the action. If you anticipate a sizable award, it is likely that you will be required to pay all or a portion of your creditors in bankruptcy. Of course, if you have cash, you may be able to negotiate and settle the debts for a fraction of the amount owed outside of bankruptcy.


The complete answer to your question depends on the nature and content of the underlying lawsuit, and ultimately the damages awarded, if any. Is there only one cause of action? Is your dispute based on tort or statutory violations? Is there a government agency involved? These are all factors to consider before attempting to determine exemptions that may apply.

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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