In re Vigil

MEMORANDUM OF DECISION

For several years, debtor Gene Vigil and his wife operated a garage. The debtor worked as the mechanic, and his wife did the office work and kept the books. Prior to bankruptcy, they terminated the business and separated. The debtor listed his occupation as “unemployed.”

The issue before the court is whether the debtor can exempt $4,450.00 worth of automotive tools and equipment. He has claimed the exemption pursuant to California Code of Civil Procedure section 704.-060(a)(3), which allows a $5,000.00 exemption for tools of the trade used by the debtor and his spouse in the same trade or business in which both earn a livelihood. A single debtor, or a married debtor whose spouse is not involved in the trade or business, is entitled to only a $2,500.00 exemption. 1 California law requires that the statute be liberally construed in favor of the debtor, except where the express provisions of the statute dictate otherwise. Security-First Bank v. Pierson (1934) 2 Cal.2d 63, 65 , 38 P.2d 784 .

■ The Trustee takes the position that there can be no claim of exemption at all under the statute where the debtor’s business was closed and he was unemployed on the day…