"California Bankruptcies"
Generally, state residency is required. Nevertheless, U.S. citizenship is not required and foreign
citizens may file California bankruptcies based on property ownership within the state, in limited circumstances.
| 11 U.S.C. §109(a): "Notwithstanding any other provision of this section, only a
person that resides or has a domicile, a place of business, or property in the United States, or a
municipality, may be a debtor under this title." |
The California Bankruptcy Courts adopted new statutory limits (dollar amounts) within Title 11 of the U.S.
Code. Section 109(e) - the allowable debt limit for unsecured debt is increased to $307,675. The allowable
debt limit for secured liabilities is increased to $922,975. The minimum aggregate claims need to commence an
involuntary petition under Section 303(b) is increased to $12,300. Exemptions provided by Section 522 are also
increased. The maximum value of homestead equity that may be claimed is increased to $18,450. Other exemption
increases include paragraphs (2) through (8). Luxury goods and services obtained within 60 days before filing
are nondischargeble, if exceeding the newly amended amount of $1,225. These amounts are adjusted automatically
by California bankruptcy courts every three years.
Back to California Bankruptcy words & phrases.
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