In California, personal injury awards are generally exempt from bankruptcy under California’s exemptions laws. The exact exemptions that apply to personal injury awards in California bankruptcy can vary depending on the specific facts of each case. However, some of the most common exemptions that may apply to personal injury awards include:
- The “wildcard” exemption: This exemption allows you to exempt any property that is not otherwise exempt, up to a certain dollar amount.
- The “personal injury” exemption: This exemption specifically covers compensation received for personal injury, including medical expenses, lost wages, and other damages.
- The “homestead” exemption: This exemption can protect the equity in your primary residence, including any compensation you received for personal injury if it was used to purchase the home.
It is important to note that the amount of these exemptions can be limited and there are rules regarding how these exemptions can be applied. It is best to consult with a bankruptcy attorney in California to determine the exact exemptions that may apply to your personal injury award in a bankruptcy case.