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Legal Helpers Tip: California has four districts (eastern, northern, southern, and central) in which your California bankruptcy lawyers can file your bankruptcy petition. This state is more complicated than many others because you have two choices of “exemption groups” instead of the normal one. You can still select between using federal or state exemptions, but you should allow your California bankruptcy lawyers help you understand the “multiple choice” state exemptions.
Making the right decision for your specific circumstances is very important. For instance, using “System One” gives you a homestead exemption from $50,000 to $124,000 equity in your home, while “System Two” allows only $17,425, with any excess being applied to other personal property. Therefore, if you own a home with measurable equity, you may want to use “System One.” But, if you rent, you might be better off using “System Two” to protect more of your personal property.