Legal Question in Bankruptcy in California

You can exempt a certain amount of property, including the cash in your pocket and bank account balance. Anything that the law does not allow you to exempt is subject to be being taken by the Chapter 7 trustee to pay your creditors. Chapter 7 is liquidation bankruptcy which means all your property will be liquidated to pay creditors unless you can protect it through the use of exemptions available generally under the laws of the state where you have lived for at least two years.