CA AB1853

Filing a bankruptcy petition or having debtor status cannot be used as a basis for accelerating loan payments or repossessing a motor vehicle under conditional sale contracts.

Increases motor vehicle equity exemption from $2,300 to $6,000 for both general and alternative exemptions in bankruptcy cases.

Expands exemptions for retirement plans, life insurance benefits, vacation pay, and employment-related claims to include spouse protections and technical defects in plan qualification.

Removes six-month time limitation on homestead sale proceeds exemptions, making these proceeds exempt indefinitely.

Eliminates joint waiver requirement for separated spouses electing alternative exemptions in bankruptcy cases and adds new $5,000 exemption for business cash, accounts receivable, and inventory.