The bankruptcy exemptions allowed in California for keeping assets from creditors may not be "doubled" by a married couple. Even if the wife and husband file bankruptcy separately, they do not each get the full set of exemptions. There are certain provisions for additional exemptions for a married couple, but they are very specific and relatively minor.

State income taxes are treated the same as federal IRS income taxes. so the rules for back income taxes to be dischargeable in bankruptcy apply to both types.

In general, you are eligible for Chapter 13 (repayment plan) if all of the following requirements are met:

1. You are an individual or a sole proprietorship business. If you want a bankruptcy plan for another type of business (corporation, partnership, etc.), you must use Chapter 11 (not covered in the presentation). Individuals who operate the other types of businesses can include in their Chapter 13 plans business debts for which they are personally liable.

2. You are not a stockbroker or commodity broker. Stockbrokers and commodity brokers are not eligible for Chapter 13 bankruptcy relief.

3. Your secured debts are less than $1,010,650 and your unsecured debts are less than $336,900. These limits were set on April 1, 2007, and are adjusted every three years. This means that Chapter 13 may not be available to people who took out large loans to purchase homes in expensive areas. In these cases, Chapter 11 may be available but is more complex and more expensive than Chapter 13.