How do I use the "wildcard" exemption under California's Code of Civil Procedure § 703.140(b)(5) to protect personal property?

You use California's "wildcard" exemption by first selecting the "System 2" exemption scheme and then applying the exemption's monetary value to any personal property not covered by other specific exemptions. Here is how to use it effectively in a bankruptcy case: Step 1: Choose the Correct Exemption System Before filing for bankruptcy, you must choose between two sets of California exemptions: System 1 (CCP § 704 series) or System 2 (CCP § 703.140). The wildcard exemption is ONLY available under System 2. You must formally make this choice on your bankruptcy paperwork; you cannot mix exemptions from both systems. Step 2: Calculate Your Total Wildcard Value The wildcard under CCP § 703.140(b)(5) has a base value (currently $1,750 as of 2024, but this adjusts). Crucially, you can add to this amount any unused portion of the System 2 homestead exemption found in CCP § 703.140(b)(1) (currently $33,650). If you are a renter or have no equity in a home to protect, you can add the entire homestead amount to the base wildcard, giving you a total of $35,400 to protect any property you choose. Step 3: Inventory Your Property and Apply Other Exemptions Create a detailed list of all your personal property with their current fair market values. First, apply any other specific System 2 exemptions, such as those for a motor vehicle, household goods, or tools of the trade. Step 4: Apply the Wildcard Exemption Use your calculated wildcard amount from Step 2 to protect any remaining assets. You can apply it to a single valuable item (like cash in a bank account) or spread it across multiple items. You can also use it to "top off" another exemption—for example, if your car is worth more than the motor vehicle exemption allows, you can apply part of your wildcard to cover the difference. Step 5: File Your Exemption Schedule When you file for bankruptcy, you must list all property you are protecting on Schedule C: "The Property You Claim as Exempt." For each item protected by the wildcard, you must cite the law—CCP § 703.140(b)(5)—and state the dollar value of the exemption you are claiming for that item. This must be filed with your initial bankruptcy petition. Important considerations: The choice to use System 2 is often best for renters or those with minimal home equity, as it provides the large wildcard. Homeowners with significant equity typically benefit more from the larger homestead protection in System 1. The dollar amounts for exemptions are adjusted for inflation every three years. Note: Failing to properly claim an exemption or choosing the wrong system can result in the loss of your property. The bankruptcy trustee can challenge the value you place on your property, so be prepared to justify your estimations. This is general information and does not constitute legal advice. For complex situations, consult with a qualified California attorney to determine the best exemption strategy for your specific case.