{"id":286829,"date":"2021-04-14T13:11:45","date_gmt":"2021-04-14T18:11:45","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/bankruptcy\/bankruptcy-laws-by-state\/california-bankruptcy-exemptions-and-law.html"},"modified":"2026-05-08T11:56:26","modified_gmt":"2026-05-08T16:56:26","slug":"california-bankruptcy-exemptions-and-law","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/bankruptcy\/bankruptcy-laws-by-state\/california-bankruptcy-exemptions-and-law.html","title":{"rendered":"California Bankruptcy Exemptions and Law"},"content":{"rendered":"\n
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California Bankruptcy Exemptions and Law<\/h1>\n\n
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\n By Susan Buckner, J.D.<\/a> | Legally reviewed by Catherine Hodder, Esq.<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n\n\n\n

Financial stress is an unfortunate part of life for most Americans. High credit card bills and other unsecured debts, like student loans, cause much of this stress. Delinquent secured debt accounts, like past-due mortgage payments, add to it. For many California families, filing bankruptcy is a way out<\/a>.<\/blockquote>\n\n\n\n

California bankruptcy laws<\/span> are governed by the federal bankruptcy code<\/span>, but they also include state exemptions that allow debtors to keep most of their personal assets. The purpose of a bankruptcy is to give debtors a fresh start<\/span> and eliminate unpayable debts, not to wipe them out completely. The type of bankruptcy<\/span> you file depends on the nature of your debts and what you want to accomplish by filing.<\/p>\n

If you have valuable assets and a substantial amount of undischargeable debt, bankruptcy may not be ideal. For everyone else, the bankruptcy process<\/span> is a way to eliminate much of the financial stress in their lives and start over.<\/p>\n

Qualifying for a California Bankruptcy<\/h2>\n

Having high credit card<\/span> debt and overdue mortgage payments may not be enough to qualify for bankruptcy. Federal and state bankruptcy laws<\/span> require those filing for bankruptcy to meet certain qualifications, known as a means test<\/span><\/a>. The state of California bankruptcy court<\/span><\/a> reminds people that bankruptcy should be a last resort, used only after other methods of clearing debt have failed.<\/p>\n

Who should file for bankruptcy?<\/h3>\n

You should consider bankruptcy<\/a> if:<\/p>\n