If you’re a homeowner, the federal bankruptcy exemptions are often worse than state exemptions because the federal homestead exemption offers very little protection for equity in your home. If you’ve resided in your current state for less than two years, the choice of exemptions becomes trickier, as explained in this article. And if that state is Alaska, Arkansas, Connecticut, District of Columbia, Hawaii, Kentucky, Massachusetts, Michigan, Minnesota, New Hampshire, New Jersey, New Mexico, New York, Oregon, Pennsylvania, Rhode Island, Texas, Vermont, Washington, or Wisconsin, you can also choose to use the federal bankruptcy exemptions. If you have resided in your current state continuously for the past 2 years (actually 730 days) before filing, you can use your current state’s exemptions. On Schedule C, the first question to answer is what set of exemptions are you selecting: state or federal? Exemptions are a set of statutes enacted in each state and by the federal government to protect a certain amount of certain types of your property from creditors. Schedule C, you list the “exemptions” that protect your property. That’s what Schedule C of the free bankruptcy forms for California is for. You need to tell your trustee why you’re entitled to keep your property. But keeping your property does not happen automatically when you file for bankruptcy. Most people get to keep all their property when they file for Chapter 7 bankruptcy. Download Schedule A/B PDF What is "Schedule C" for in a California bankruptcy case? And for assets where you can find a clear value - like for your checking account or for your used car - make sure to look up the precise value online and list that on Schedule A/B. It may be hard to value things like used furniture or an interest in your business. That’s means what you could sell the asset for today, not what you paid for it new. You also must list the current value of all your assets on Schedule A/B. So bottom line - be very diligent in listing all of your assets on the free bankruptcy forms for California. Intentionally leaving valuable property off your bankruptcy forms is a crime - bankruptcy fraud - as this Real House Wife of New Jersey discovered. But if you “forget” to list real estate, bank accounts, or cars that you own, that’s a big problem. If you forget to list a twenty-year old typewriter or a few pairs of socks, it may not matter because those items have no resale value. Failing to list significant property items on Schedule A/B is the biggest reason that people get in trouble in bankruptcy. You must list anything that you own only part of and anything you might have a right to own at a later time. Your real estate, your car, your financial accounts, your clothes, your costume jewelry, even your pet. On Schedule A/B, you list all of your property. Download Voluntary Petition PDF What is "Schedule A/B" for in a California bankruptcy case? The petition is designed to give the Court a general overview of who you are. The petition asks for your name, social security number, address, which chapter of bankruptcy you want to file, whether you own a business, whether you’ve filed for bankruptcy in the past, and other questions like that. Think of the voluntary petition as the “About Me” section of the free bankruptcy forms for California. What is the "Voluntary Petition" for in a California bankruptcy case? Statement About Your Social Security Numbers.In the article, we’ll explain each of these forms for California and we’ll provide links to download each form for free. The Court is asking these questions because they want to understand your entire financial picture. Just be sure to answer every question as best you can. Some of the questions may seem bizarre - “wait, the Court wants to know how much my pet dog can be sold for?” That’s ok. You will be expected to describe everything you make, spend, owe, and own in the free bankruptcy forms for California. To file for Chapter 7 bankruptcy in California, you have to complete a packet of about 24 forms. Districts: Southern District of California, Northern District of California, Eastern District of California, Central District of California
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