Basics of the California Homestead Exemption
California homestead exemption laws are complicated and a very powerful tool to protect equity in your home from creditors, both within the context of bankruptcy and outside of bankruptcy. When dealing with exemption laws, the assistance of an experienced California licensed attorney is critical.
What is a homestead exemption? Amount of equity in your home protected from creditors. California homestead exemption applies (per, CA Code of Civ. Pro. 704.710):
- “if the Homestead is the primary dwelling
- in which the judgment debtor or their spouse resides on the date the creditor’s lien attached to the dwelling.
- where judgment debtor or their spouse resides continuously until the court declared that the dwelling is a homestead.”
The homestead exemption amounts were revised in April 2010. The amount of the homestead exemption can vary depending on the household members (CA Code of Civ. Pro. 704.730):
- $75,000- Single
- $100,000 – Married or Family Unit (contact our office to find out if your family unit qualifies)
- $175,000- over 65 years of age, or physically or mentally disabled
- $175,000- 55 years of age or older with a gross annual income of $15,000 or less, if married, a gross annual income of $20,000 and an involuntary sale.
For additional information regarding homestead exemptions, contact Khansari Law at 818.650.6444.