Oroville, CA asked in Bankruptcy for California

Q: What exactly is the "silent exemption" in Chapter 7 bankruptcy in California and how does it work?

I have heard that I may be able to keep my car even though it's worth $2000 more than the $3530 exemption by using the silent exemption but I have no idea what it is and how to use it.

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4 Lawyer Answers
David S. Greenberg
David S. Greenberg
PREMIUM
Answered
  • Bankruptcy Lawyer
  • San Diego, CA
  • Licensed in California

A: You are referring to the wildcard exemption of up to $28,225.00. You can use this exemption for any purpose, includin your $2,000.00 vehicle equity.

You can then use the remaining wildcard exemption of $26,225.00 as needed.

Please note that this is available if you are not using a homestead exemption on a personal residence.

Timothy Denison
Timothy Denison
Answered
  • Bankruptcy Lawyer
  • Louisville, KY

A: I think you mean the wildcard exemption, which would allow you to protect the $2,000 overage in your car.

Theodore Allan Greene
Theodore Allan Greene
Answered
  • Bankruptcy Lawyer
  • Sacramento, CA
  • Licensed in California

A: I have never heard of that term. You should consult with a bankruptcy attorney to know for sure.

Harlene Miller
Harlene Miller
Answered
  • Bankruptcy Lawyer
  • Irvine, CA
  • Licensed in California

A: As my colleagues indicated - I have never heard of the "silent exemption." Don't know that there is such a thing. Depending upon your assets, you may qualify to use what is called the "wildcard" exemption which you can use toward assets with more value than a specific exemption for that asset, i.e., a car. Suggest you meet with an experienced bankruptcy attorney to discuss all your assets and how they may be protected if you file bankruptcy.

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