What are bankruptcy exemptions in California?

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California has the   most generous and complex   bankruptcy exemption framework in the country, with two parallel state systems.    1. Opt-Out State   California opted out of federal bankruptcy exemptions under   11 U.S.C. § 522(b)(2)  . Debtors must choose one of two California systems — and   cannot mix and match  .    2. System 1 — CCP § 704 (the "Homeowner Exemptions")   Best for debtors with   significant home equity  . Key exemptions (2024): -   Homestead — § 704.730  : minimum   $349,720  , maximum   $722,925  , indexed to county median home prices and adjusted annually for inflation. AB 1885 (2021) made this the highest in the country for most counties. -   Motor vehicle — § 704.010  : $7,500 equity per vehicle. -   Tools of the trade — § 704.060  : $10,275 (single) or $20,550 (married couple in same trade). -   Personal property   (household goods, clothing): unlimited if "ordinarily and reasonably necessary" — § 704.020. -   Jewelry, heirlooms, art — § 704.040  : $10,275. -   Retirement accounts — § 704.115  : 401(k), pensions = unlimited; IRAs = "necessary for support." -   Public benefits, Social Security, unemployment — § 704.080, .120  : fully exempt. -   No wildcard   under § 704.    3. System 2 — CCP § 703 (the "Wildcard System")   Best for   renters or those with little home equity  . Key exemptions (2024): -   Homestead — § 703.140(b)(1)  : $34,850. -   Wildcard — § 703.140(b)(5)  : $1,850 +   any unused homestead amount   = up to ~$36,700 of cash/anything. -   Motor vehicle — § 703.140(b)(2)  : $7,500. -   Tools of trade — § 703.140(b)(6)  : $11,150. -   Jewelry — § 703.140(b)(4)  : $2,225. -   Retirement accounts — § 703.140(b)(10)(E)  : "necessary for support."    4. Choosing Between Systems   - Significant home equity → § 704. - Renter or underwater homeowner → § 703 (wildcard is the key benefit).    5. Domicile Requirement   Per   11 U.S.C. § 522(b)(3)  , you must have lived in California for   730 days (2 years)   before filing to use California exemptions. Otherwise, use the state where you lived the majority of the 180 days before that 730-day period.    6. Indexing   Both systems adjust amounts every   3 years   under CCP § 703.150.  This is legal information, not legal advice.