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In chapter 7 using california 704 exemptions, what can I use to protect the few hundred I have in the bank? Heard 75% of wages e

Riverside, CA |

I had heard that there is an exemption protecting 75% of wages earned. What is the cite? Are there better ways to protect? I can 't use wildcard because I am in 704 due to home equity. Also, do I even need to worry about this if there is only $400 in my account. Would the trustee take this? How should I best go about protecting this asset. Thanks,. P.S. - For other reasons, I don't have time to remove the money. I must file today.

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Attorney answers 5

Posted

If all the money in the account is from wages, then I usually apply CCP Sect. 704.070 in the amount of 75% of the account balance, and also Sect. 706.051 for the remaining 25%. I have never had any problem with that approach.

Asker

Posted

thanks. What is 706.051?

Asker

Posted

Also, Let's say I earned $2k in the past month. I now have only $400 of it in my account. Can I use the 75% exempt rule (704.070(b)2) to protect the whole amount since it is far less than 75% of my past 30 day wages?

William James Waters

William James Waters

Posted

CCP (California Code of Civil Procedure) Sect. 706.051 is another exemption section that you can use in addition to 704.070 for the same asset. It exempts earnings necessary for the support of the debtor or the debtor's family. What you earned in the past month doesn't really matter. Your Schedule B should show the account balances as of the date of filing your BK petition. Whatever amount is in the account(s) at the time of filing is what you would need/want to exempt in order to protect those funds from the Trustee taking them for the benefit of creditors.

Brian Crozier Whitaker

Brian Crozier Whitaker

Posted

The code section protects 75% of the earnings that were "levied upon". The paid earnings that were already spent are not being "levied upon".

Posted

There is no exemption for money in your bank account except the so-called "wildcard" exemption. $400 is something the trustee would not bother with. Why don't you spend or withdraw the money before you file? You should not attempt to file your BK without a lawyer's assistance. Too many things can go wrong.

Posted

Put the $400 toward legal and filing fees.

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Posted

I wouldn't worry about the 400.. You will spend that in filing paper work and debt counseling classes.

Posted

Use CCP 704.070

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