Because of my disability, I purchased a rental income property with my injury case settelment to generate rental income. I am wondering if in the state of California, the property or the rental income from the property is exempt under CCP 104.140 (b)Except as provided in subdivisions (c) and (d), an award of damages or a settlement arising out of personal injury is exempt to the extent necessary for the support of the judgment debtor and the spouse and dependents of the judgment debtor.
I would say that you'll have a hard time making that exemption stick. You used your injury settlement to buy real estate. Typically, that is not a property item that would be considered "necessary to support" the debtor. Usually, if the settlement was used to purchase something like an annuity to be used to pay for medical support, that would qualify. But, I highly doubt that a rental property is going to be considered "necessary for support." I would say the rental income is not exempt.
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