Personal property · Beverly Hills
Household Goods, Jewelry and Personal Property
Household goods, jewelry and personal property such as furniture, clothes, appliances and wedding rings are usually protected in a California bankruptcy. The limits matter most for jewelry, art and items of unusual value. Call (310) 362-9071 and we will go through what you own with you.
- System 1 has no dollar cap on ordinary household items
- System 1 protects $10,950 of jewelry, heirlooms and art (since April 1, 2025)
- System 2 protects $925 per household item and $2,175 of jewelry
- Items are valued at what they would sell for used
At a glance
System 1: ordinary household items
System 1 protects ordinary household items with no dollar cap. Code of Civil Procedure section 704.020 covers household furnishings, appliances, provisions, wearing apparel and other personal effects that are "ordinarily and reasonably necessary" for you and your family.
In deciding what qualifies, a court looks at two things:
- Whether the item is ordinarily found in a household, like a bed, a sofa, a refrigerator, a TV or everyday clothes.
- Whether the item has "extraordinary value," like a designer sofa worth far more than a normal one.
For most families, everything in the home fits. Trouble starts with unusual items, such as a grand piano, a wine collection or a closet of designer handbags. System 1 also protects $4,400 of materials bought to repair or improve your home (effective April 1, 2025).
Limits in each system
| Item | System 1 (CCP 704) | System 2 (CCP 703.140(b)) |
|---|---|---|
| Furniture, appliances, clothing, personal effects | No cap if ordinary and reasonably necessary | $925 per item |
| Jewelry | $10,950 total for jewelry, heirlooms and works of art | $2,175 |
| Heirlooms and art | Included in the $10,950 above | No separate exemption; use the wildcard |
| Anything over the limits | No wildcard | Wildcard of $1,950 plus any unused home amount, up to $38,700 |
All amounts are effective April 1, 2025. System 2's $925 limit applies to each item, not the total. A renter with a home full of ordinary things is usually fine under System 2, and the wildcard exemption can cover items worth more than $925. Compare the systems on our System 1 vs System 2 page.
How your things are valued
Your things are valued at what they would sell for used, on the day you file. Think garage sale, thrift store or online resale, not what you paid or what a new one costs.
- A sofa that cost $3,000 five years ago may sell for $300.
- A two-year-old TV may sell for a small part of its original price.
- Clothing, apart from designer pieces, usually has very little resale value.
Jewelry is different. Gold and diamonds keep value, so we may ask for an appraisal or a quote based on metal weight. A wedding ring is usually well within the System 1 limit. Under System 2, a ring worth more than $2,175 may need the wildcard.
Art, collectibles and pets
Art and collectibles. Paintings, sculptures, sports memorabilia, coins, watches and similar items can be worth a lot. Under System 1, art and heirlooms share the $10,950 jewelry limit. A valuable collection above that can be at risk in Chapter 7. Honest values matter here, because the trustee may hire an appraiser.
Pets. Under System 2, household animals are covered like other household goods, up to $925 each. Under System 1, a family pet is usually treated as an ordinary household item. A family dog or cat usually has little resale value, so it is rarely an issue. Animals bred or kept for sale are a different question.
If you own items of real value that exemptions do not cover, Chapter 13 may let you keep them by paying their value to creditors over time.
Personal property mistakes to avoid
- Listing purchase prices. Use used resale values, not receipts.
- Leaving items off. Every item must be listed, even if it is protected. Group ordinary items by category.
- Giving items to family before filing. Transfers before filing can be undone and can put your discharge at risk.
- Buying expensive items right before filing. New purchases on credit before filing can lead to objections.
What it costs
- Chapter 7: flat attorney fee from $1,200, plus the $338 court filing fee
- Chapter 13: attorney fee quoted in writing, and part of it can be paid through the plan
- Payment plans are available, and the first consultation is free
More on what you keep
- California bankruptcy exemptions: what you keep
- California Exemptions: System 1 vs System 2
- The California Homestead Exemption and How Yours Is Figured
- The California Motor Vehicle Exemption
- The Wildcard Exemption Under CCP 703.140(b)(5)
- Retirement Accounts, 401(k)s and Pensions in Bankruptcy
- The Tools of the Trade Exemption
- Household Goods, Jewelry and Personal Property
- Wages, Tax Refunds and Cash on Filing Day
Household goods and jewelry questions
Can I keep my furniture in bankruptcy?
Yes, you can almost always keep your furniture in bankruptcy. System 1 protects ordinary household furnishings with no dollar cap, and System 2 protects each item up to $925 (effective April 1, 2025).
Can I keep my wedding ring in bankruptcy?
Yes, you can usually keep your wedding ring in bankruptcy. System 1 protects $10,950 of jewelry, heirlooms and art. System 2 protects $2,175 of jewelry, plus the wildcard (amounts effective April 1, 2025).
Will the trustee come to my home?
No, the trustee usually will not come to your home. The trustee relies on your schedules and may ask questions at the 341 meeting of creditors. Accurate lists avoid follow-up.
How do I value my household goods?
You value your household goods at what they would sell for used on the day you file. We help you group items and use realistic numbers. See our guide to what you keep in bankruptcy.
Free consultation
Find out what your belongings are worth to a trustee
Call (310) 362-9071 or send the form. Bring photos or a list of jewelry and valuables and we will review them with you.
Law Offices of John Asuncion9454 Wilshire Blvd., Penthouse Floor
Beverly Hills, CA 90212
(310) 362-9071
Monday to Friday, 9 a.m. to 6 p.m.