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LLCs (Limited Liability Companies)
Most people assume that there is a certain amount of debt that you have had to have acquired in order to be able to apply for bankruptcy; however, this is not the truth. In determining qualifications for bankruptcy, the only thing that you may be asked to do is provide information regarding the debts that you have and proof of your income.It may be necessary to take the bankruptcy means test. This test is simply used to determine your eligibility to file under Chapter 7 bankruptcy. If you are not eligible to file under Chapter 7, you can still obtain the benefits of bankruptcy by filing under Chapter 13.
Not all debts will be discharged in bankruptcy. Student loans, child support, spousal support, some taxes, homeowner association fees, court fees and penalties, and federal loans will still need to be paid.
A bankruptcy exemption allows a debtor to keep property that would otherwise be sold to pay creditors. There are two sets of exemptions in California:
An example of a 703 exemptions case: In a Chapter 7 bankruptcy filed in California, you can keep up to $1,550, plus any unused homestead exemption amount, adding up to $30,825 for single debtors as of 2021 of miscellaneous personal property through the wildcard exemption. This can be in the form of cash, money in the bank, a tax refund, books, watches, pets, and any of your cherished personal property.
Additionally, if you have equity in your car, you can protect up to $5,850 of value through the motor vehicle exemption. Let's say your car is valued at $10,800.You can still fully protect it by using the full motor vehicle exemption and then an additional $4,950 from your wildcard exemption. This means that your car worth $10,800 is fully protected from the bankruptcy court - they cannot take it!
Exemptions are used to protect your property so that you can keep it when you file for bankruptcy. In addition to the wildcard exemption and motor vehicle exemption, there are many other exemptions that will protect your personal property.