Legal Question in Bankruptcy in California

I live in California (have for years), where the bankruptcy exemptions are 'generous'. We get to exempt househood furnishings, clothes, appliances, and personal goods up to $525 per item.

Question: I maintain a storage unit in another STATE that contains household goods. Over the years I have shippped some things out of there to my current California residence, but I have never had a large enough place to take it all. I have maintained this storage unit for a long time (many years).

As I am considering filing for Ch. 7, do you know if the same exemptions (up to $525 per item) apply to the stuff in storage in another state? Or, would those goods be considered non-exempt as they are not at my principal residence?

I just don't know whether the fact that the stuff is stored elsewhere would change how (or whether) an exemption would be applied.

Depending on your answer, I may or may not be eligible for Chapter 7. Thank you..


Asked on 1/25/10, 2:00 pm

2 Answers from Attorneys
Asaph Abrams Law Office of Asaph Abrams

Exemptions don't determine eligibility to file under chapter 7; they determine whether assets are subject to liquidation. You can exempt the out-of-state property with California exemptions assuming you are current that you are eligible to use California exemptions. Different factors affect which exemptions you are entitled to use. Consult with an attorney in your area to ensure that you use the correct exemptions and that you apply them correctly.

Important disclaimer:

Unilateral written communications may be incomplete or misconstrued. This answer is not legal advice and it is based upon the limited and partial information provided in the question. This answer is general in nature. It is strictly opinion and legal opinions differ and some may be incorrect. This reply does not create legal representation and does not create an attorney-client relationship (or retainer). The information herein should not be relied upon in determining whether or not to take or refrain from any action. Only an attorney that agrees in writing to represent a person is capable of giving legal advice in response to a question. Such a hired or retained attorney is in a unqiue position wherein he or she can clarify the questions, determine and avoid conflicts of interest and gather all the information necessary to give an informed answer. A retained attorney is in a unique position to follow up on their legal advice and adapt/correct it as circumstances change or new information or knowledge comes to light. All individuals are urged to retain competent legal counsel before filing for bankruptcy. Errors in completing and filing a bankruptcy petition can have disastrous consequences.

Read more
Answered on 2/01/10, 11:08 am
Brian D. Lerner Law Offices of Brian D. Lerner, A Professional Corporation

Hello:

Eligibility to file Bankruptcy is not dependent on what you can claim or not claim. If your question is that you do not want to file Bankruptcy if you cannot exempt certain property, then it would have to be analyzed individually. However, your income and expenses are much more important in determining eligibility.

Read more
Answered on 2/04/10, 12:26 pm


Related Questions & Answers

More Bankruptcy Law questions and answers in California