One of the top questions we hear from people considering bankruptcy is: “Will I lose all my stuff?” It’s an understandable fear—nobody wants to risk their home, car, or personal belongings just to get out of debt. The good news is that in California, the vast majority of people don’t lose anything at all when they file for bankruptcy.
California’s Generous Exemptions
California law has some of the most generous bankruptcy exemptions in the country. These exemptions are designed to protect the property you need to live and work, such as:
- Your home (with substantial homestead protection, depending on your county and circumstances)
- Your car (up to a certain value)
- Household goods and personal items
- Retirement accounts
- Wages and benefits
In most cases, exemptions cover everything a person owns. That means there’s nothing for the bankruptcy trustee to take, and you get to keep your property while wiping out your eligible debts.
What If Something Is at Risk?
On the rare occasion that an item isn’t fully protected by exemptions, you won’t be blindsided. We would discuss this before your case is ever filed so you know exactly where you stand. You’ll have a clear picture of whether there’s anything to be concerned about, and you’ll never be pressured into filing if the risk outweighs the benefit.
Why This Matters
Bankruptcy is meant to give people a fresh start—not to leave them empty-handed. California’s laws reflect that principle. By using the exemptions strategically, most clients are able to get debt relief without giving up the things that matter most to them.
Bottom Line
If you’re worried about losing your property in bankruptcy, take a deep breath. In California, most people don’t lose a thing. And if there’s ever a risk, you’ll know about it upfront so you can make the right decision for your future.
At San Diego Legal Pros, we’ve guided thousands of Californians through this process, and our goal is always the same: protect what you have, eliminate the debt that’s holding you back, and give you the fresh start you deserve.
Want to know more about how California’s bankruptcy exemptions can protect your property? You can call 888.845.9190 to speak with a San Diego bankruptcy attorney and debt relief lawyer from San Diego Legal Pros. With more than 20 years of experience, we’re here to answer your questions and offer a free consultation so you can move forward with confidence.