Debtor exemptions: bankruptcy.

Existing law identifies property of a debtor that is exempt from all procedures for enforcement of a money judgment. Under existing law, those exemptions are available to a debtor in a federal bankruptcy case, whether a money judgment is being enforced by execution sale or other procedure, unless the debtor elects certain alternative exemptions. Existing law also provides that a specified portion of equity in a homestead, as defined, is exempt from execution to satisfy a judgment debt, and sets forth the amounts of the homestead exemptions available under specified circumstances. Existing law requires the Judicial Council to, every 3 years, adjust the amount of the exemptions described above based on the change in the annual California Consumer Price Index for All Urban Consumers, as specified. This bill would increase the dollar amount of the exemptions for a debtor's interest in motor vehicles, jewelry, and implements, professional books, or tools of the trade of the debtor or the debtor's dependent. This bill would, beginning April 1, 2013, and every 3 years thereafter, require the Judicial Council to submit to the Legislature the amount by which the dollar amounts of the homestead exemptions described above may be adjusted based on the change in the annual California Consumer Price Index for All Urban Consumers, as specified. This bill would also increase the amount of the homestead exemptions for persons 55 years of age or older who meet specified income criteria.