California's 2022 Inflation Adjustments and New $600,000 Homestead Exemption for 2021 California Exemption Updates

California's 2022 Inflation Adjustments and New $600,000 Homestead Exemption for 2021 California Exemption Updates

If there's changes in California’s exemptions, here's where you'll find out about them.
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California Bankruptcy Exemptions - All Categories
 
Is California Adjusting Its Bankruptcy Exemptions for Inflation in 2022?

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Last Reviewed: Mon, Mar 14, 2022

2022

California has done it's every-three-year inflation adjustment, and the new figures can be found on California Judicial Council Form EJ-156.

(Note: If you have been to this link before, to view the 2019 version, you'll need to clear your browser cache to load the new 2022 version of the form!)

California offers two exemption systems and the amounts in both systems have been changed

Section 703 Exemption Adjustments

In its § 703 exemption system  (the system that basically mirrors the federal system but applies a higher inflation rate) the new exemptions are as follows

Code Section
703.140(b)
Item New Amount
(1)

The debtor's aggregate interest in real property or personal property that the debtor or a dependent of the debtor uses as a residence, or in a cooperative that owns property that the debtor or a dependent of the debtor uses as a residence

$31,950

(2)

The debtor's interest in one or more motor vehicles

$6,375

(3)

The debtor's interest in household furnishings, household goods, wearing apparel, appliances, books, animals, crops, or musical instruments, that are held primarily for the personal, family, or household use of the debtor or a dependent of the debtor (value is of any particular item)

$800
(4)

The debtor's aggregate interest in jewelry held primarily for the personal, family, or household use of the debtor or a dependent of the debtor

$1,900

(5)

The debtor's aggregate interest, plus any unused amount of the exemption provided under paragraph (1), in any property

$1,700

(7)

The debtor's aggregate interest in any implements, professional books, or tools of the trade of the debtor or the trade of a dependent of the debtor

$9,525

(8)

The debtor's aggregate interest in any accrued dividend or interest under, or loan value of, any unmatured life insurance contract owned by the debtor under which the insured is the debtor or an individual of whom the debtor is a dependent

$17,075

(11)(D)

The debtor's right to receive, or property traceable to, a payment on account of personal bodily injury of the debtor or an individual of whom the debtor is a dependent

$31,950

Section 704 Exemption Adjustments

In the § 704 exemption system (the one with the big $300,000 to $600,000 homestead amount), the new exemption amounts highlights are as follows:

Code Section Item  new amount

704.010

Motor vehicle $3,625

704.030

Material to be applied to repair or maintenance of residence

$3,825

704.040

Jewelry, heirlooms, art

$9,525

704.060

Personal property used in debtor's or debtor's spouse's trade, business, or profession (amount of exemption for commercial motor vehicle not to exceed $4,850)

$9,525

704.060

Personal property used in debtor's and spouse's common trade, business, or profession (amount of exemption for commercial motor vehicle not to exceed $9,700)

$19,050

704.220

Deposit account, generally (exemption without claim; amount per judgment debtor, section 704.220(a),(e))

$1,826

704.080

Deposit account with direct payment of social security or public benefits (exemption without claim, section 704.080(b))

 

 

  • Public benefits, one depositor is designated payee

$1,900

 

  • Social security benefits, one depositor is designated payee

$3,825

 

  • Public benefits, two or more depositors are designated payees

$2,825

 

  • Social security benefits, two or more depositors are designated payees

$5,725

704.090

  • Inmate trust account

$1,900

 

  1. Inmate trust account (restitution fine or order)

$325

704.100

  1. Aggregate loan value of unmatured life insurance policies

$15,250

 

2021

Homestead

California has raised its homestead exemption, effective January 1, 2021, from $75,000 under existing law, to up to $600,000, for most Californians in urban areas.

In more rural counties the exemption may only be as much as $300,000.

The actual amount depends on the median sales price of a home in your county in the preceding calendar year, but can't be more than $600,000 or less than $300,000. 

Most California counties in urban areas have median home prices that are above $600,000 for the past several years. The actual amounts for 2021 for each county will not be known until the end of 2020.

Click here to see California Bankruptcy Exemptions.

April 2022 - Federal Bankruptcy Amounts Updated for Exemptions, debt limits, etc.

Source: Adjustment of Certain Dollar Amounts in the Bankruptcy Code A Notice by the Judicial Conference of the United States on 02/04/2022

Affected sections of Title 28 U.S.C. and the bankruptcy code Dollar amount to be adjusted New (adjusted) dollar amount 1
28 U.S.C.
Section 1409(b)—a trustee may commence a proceeding arising in or related to a case to recover:    
(1)—money judgment of or property worth less than $1,375 $1,525.
(2)—a consumer debt less than $20,450 $22,700.
(3)—a non-consumer debt against a non-insider less than $25,000 $27,750.
11 U.S.C.
Section 101(3)—definition of assisted person $204,425 $226,850.
Section 101(18)—definition of family farmer $10,000,000 (each time it appears) $11,097,350 (each time it appears).
Section 101(19A)—definition of family fisherman $2,044,225 (each time it appears) $2,268,550 (each time it appears).
Section 101(51D)—definition of small business debtor $2,725,625 (each time it appears) $3,024,725 (each time it appears).
Section 109(e)—debt limits for individual filing bankruptcy under chapter 13 $419,275 (each time it appears) $1,257,850 (each time it appears) $465,275 (each time it appears). $1,395,875 (each time it appears).
Section 303(b)—minimum aggregate claims needed for the commencement of an involuntary chapter 7 or 11 petition $16,750 (each time it appears) $18,600 (each time it appears).
Section 507(a)—priority expenses and claims:    
(1)—in paragraph (4) $13,650 $15,150.
(2)—in paragraph (5)(B)(i) $13,650 $15,150.
(3)—in paragraph (6) $6,725 $7,475.
(4)—in paragraph (7) $3,025 $3,350.
Section 522(d)—value of property exemptions allowed to the debtor:    
(1)—in paragraph (1) $25,150 $27,900.
(2)—in paragraph (2) $4,000 $4,450.
(3)—in paragraph (3) $625 $13,400 $700. $14,875.
(4)—in paragraph (4) $1,700 $1,875.
(5)—in paragraph (5) $1,325 $12,575 $1,475. $13,950.
 
(6)—in paragraph (6) $2,525 $2,800.
(7)—in paragraph (8) $13,400 $14,875.
(8)—in paragraph (11)(D) $25,150 $27,900.
Section 522(f)(3)—exception to lien avoidance under certain state laws $6,825 $7,575.
Section 522(f)(4)—items excluded from definition of household goods for lien avoidance purposes $725 (each time it appears) $800 (each time it appears).
Section 522(n)—maximum aggregate value of assets in individual retirement accounts exempted $1,362,800 $1,512,350.
Section 522(p)—state homestead exemption, limit for interest acquired 1215 days before filing $170,350 $189,050.
Section 522(q)—state homestead exemption, limit under particular circumstances $170,350 $189,050.
Section 523(a)(2)(C)—exceptions to discharge—presumption of nondischargeability:    
(1)—in paragraph (i)(I)—consumer debts for luxury goods or services incurred ≤90 days before filing owed to a single creditor in the aggregate $725 $800.
(2)—in paragraph (i)(II)—certain cash advances obtained ≤70 days before filing, in the aggregate $1,000 $1,100.
Section 541(b)—certain property of the estate exclusion limits $6,825 (each time it appears) $7,575 (each time it appears).
Section 547(c)(9)—minimum preference avoidance value in cases with primarily non-consumer debts $6,825 $7,575.
Section 707(b)—dismissal of a chapter 7 case or conversion to chapter 11 or 13 (means test):    
(1)—in paragraph (2)(A)(i)(I) $8,175 $9,075.
(2)—in paragraph (2)(A)(i)(II) $13,650 $15,150.
(3)—in paragraph (2)(A)(ii)(IV) $2,050 $2,275.
(4)—in paragraph (2)(B)(iv)(I) $8,175 $9,075.
(5)—in paragraph (2)(B)(iv)(II) $13,650 $15,150.
(6)—in paragraph (5)(B) $1,375 $1,525.
(7)—in paragraph (6)(C) $750 $825.
(8)—in paragraph (7)(A)(iii) $750 $825.
Section 1322(d)—length of chapter 13 plan, current monthly income, 4+ household $750 (each time it appears) $825 (each time it appears).
Section 1325(b)—confirmation of chapter 13 plan, current monthly income, 4+ household $750 (each time it appears) $825 (each time it appears).
Section 1326(b)(3)—payments to former chapter 7 trustee $25 $25.
1 The New (Adjusted) Dollar Amounts reflect a 10.97347880254584 percent increase, rounded to the nearest $25.

State Updates - 2022

California - April 1 2022

California updates its exemption amounts every three years. (§703.150) (The last revision was  in 2022; the next will be April 1, 2025.) As a result, the amounts listed in this chart (from the 2019 revisions) may not match the amounts that appear in the cited statutes. The 2022 exemption amounts can be found on form EJ-156 the California Judicial Council Website.

Indiana - March 2022

Indiana adjusts its exemption amounts every six years, starting in 2010, most recently in 2022, and next in 2028.

Maryland - April 1, 2022

Maryland homestead amount is keyed to the inflation adjusted amount of the federal exemptions which change every three years and was last changed in 2022.

Ohio - April 2022

Ohio adjusts the exemption amounts found in section RC 2329.66 every three years. The latest inflation adjusted amounts for 2022 can be found here

 

Updates for Other States - 2021

 

Alabama – April 2021

  • Homestead Exemption Ala. Code § 6-10-2, § 6-10-3, § 6-10-4; Const. Art. X, § 205 increasing from $15,500 to $16,450
  • Personal Property Exemption Ala. Code § 6-10-6 increasing from $7,750 to $8,225

Washington - May 2021

  • 735 ILCS 5/12-901 Homestead exemption has been increased to the greater of: $125,000.00; or the county median sale price of a single-family home for the year preceding the petition date – May 2021

West Virginia - July 2021

  • Homestead/Motor Vehicle Exemption Amount Increase – July 2021
  • District of West Virginia allows the use of Federal Exemptions effective July 7, 2021

California - July 2021

  • Deposit Accounts C.C.P. § 704.220 is based on the state Minimum Basic Standard of Adequate Care and is adjusted annually. The current MBSAC floor for a family of four in Region 1 is $1,826.00 – July 2021
  • California also increased its Homestead Exemption - December 2020

Maine - October 2021

Connecticut — October 2021

H.B. 6466: Raises the homestead exemption from $75,000 to $250,000, the motor vehicle exemption to $7,000, and creates an exemption for the cash surrender value of life insurance policies. • Signed into law on July 12, 2021. Effective October 1, 2021.

General Changes

In general, amounts of the exemptions are increased, as many of the exemption amounts have not changed in decades. 

 

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Significant Pre-2021 Updates

Georgia - 2012, 2013, 2015

The 2012 Amendment: This amendment increased the amount of exemption for a debtor’s residence from $10,000.00 to $21,500.00 and increased the amount of such exemption from $20,000.00 to $43,000.00 where title to the residence “is in one of two spouses who is a debtor.” O.C.G.A. §44-13-100(a)(1).

The 2013 Amendment: This amendment increased the amount of the exemption available on motor vehicles from $3,500.00 to $5,000.00. O.C.G.A. §44-13-100(a)(3).

The 2015 Amendment: This amendment increased the amount of the basic “wild card” exemption in “any property” from $600.00 to $1,200.00. It also increased the amount by which a debtor may convert (or carry-over) an unused residence exemption to a wild card exemption from $5,000.00 to $10,000.00. O.C.G.A. §44-13-100(a)(6).

 

Jurisdictional relevance: There are versions of this article for each State.
Selected State: California
California Bankruptcy Exemptions - All Categories
 
Is California Adjusting Its Bankruptcy Exemptions for Inflation in 2022?
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