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Posted on Monday, February 21st, 2011.

Exemptions, exempt property

Certain property owned by an individual debtor that the Bankruptcy Code or applicable state law permits the debtor to keep from unsecured creditors. Since exemptions are guided by state law, California exemptions are equally applicable to residents in Orange County as in Riverside County or any other county, for that matter. But California exemptions may differ from those offered by other states. For example, in some states the debtor may be able to exempt all or a portion of the equity in the debtor’s primary residence (homestead exemption), or some or all “tools of the trade” used by the debtor to make a living (i.e., auto tools for an auto mechanic or dental tools for a dentist). The availability and amount of property the debtor may exempt depends on the state the debtor lives in.