A majority of the clients I work with in my consumer practice can keep their all of their property when they file bankruptcy. This is because California offers exemptions that you can put on property to prevent it from being sold by the Trustee in the bankruptcy to pay creditors. Be sure to disclose all of your assets to your bankruptcy attorney to ensure that the exemptions available will cover your property. Generally, with exemptions you can protect about $30,000 in any type of property or if you have equity in a personal residence you can protect anywhere between $75,000 and $175,000.

The automatic stay is generally triggered immediately when you file for bankruptcy. It is a stay created by federal statute, specifically 11 U.S.C. Section 362. It generally stays or stops collection activity and attempts to repossess or foreclose on your property. The automatic stay and the discharge of debts (legal excuse not to repay) are the main reasons for filing and can provide significant relief to those in financial distress.