Legal Question in Bankruptcy in California

Own up to your parents that you owe $50K in unsecured credit card debt, you are contemplating filing for Chapter 7, and would they please not give you any money just yet. This will also involve admitting to your parents that you are a compulsive gambler or drug addict, as applicable. If you're unable to tell your parents the truth, you need to reflect on your relationship with your parents. Or you could always use the money to repay your creditors.

Many people get into overwhelming debt. In today's economy, it's an altogether too common problem...

To answer the question, it depends on how much you believe you will receive...If you list this anticipated gift, you can protect it with a "wild card" exemption - which is over 20K. Assuming you are not using this exemption to protect other property, this might cover the entire amount you anticipate. Take a look at both sets of exemptions found in CCP 703 and 704. 704 is used if you are protecting equity in a home; otherwise use 703.

To make sure all your assets are covered and you successfully discharge all the debt you can, you should at least consult with an attorney and discuss the "exemptions" with him or her.

Good luck!

This answer is provided for informational purposes only. Actual legal advice can only be provided in an office consultation by an attorney licensed in your jurisdiction, with experience in the area of law in which your concern lies.

Actually, the anticipated gift is not property of the estate at all. It is not something that needs to be listed in schedule B nor exempt under schedule C. As of the date of filing you have no legal right nor beneficial interest in the anticipated gift. There is nothing to exempt. Section 541(a) defines property of the estate and only section 541(a)(5) deals with property received after the filing of your bankruptcy and for all practical purposes is limted to bequest, devise and inheritance (legal term of art and does not inclde "gifts"). This is not to say a trustee would not attempt to recover such a gift (must be received by you within 180 days of the petition date). That is always a possiblity. Best advice is to have received the gift after 180 days from your bankruptcy filing.

I am licensed in both California and Texas.