The California Homestead exemption (found in CCP §704.730 for those keeping track) was increased as of January 1, 2010.

The Homestead Exemption is the amount of equity in excess of existing liens that the homeowner can protect from levy by creditors.  So if your home has a value of $500,000, your existing mortgage balance is $400,000 and you fall into the $75,000 homestead category, then $75,000 of the $100,000 equity cushion in your home is protected from creditors.  This works in bankruptcy and out.

Here are the new limits:

  • $75,000:  Basic homestead for single person
  • $100,000:  Head of household
  • $175,000:  Over 65 or physically disabled or under 55 with less than $15,000 in annual income ($20,000 if married).

The full text of the statute appears below.

The exact numbers of the California Bankruptcy Exemptions will be released by the Judicial Council on or about April 1, 2010, and published by the Administrative office of the Courts.  The actual published limits are harder than hens’ teeth to find on line, even if you know what you’re looking for.  But here is the current published list of  California “Current Dollar Amounts of Exemptions from the Enforcement of Judgments.”  You can check back here on my site for an update when they release the new numbers on April 1, 2010.

California Code of Civil Procedure ("CCP") §704.730

10 Responses to California Homestead Exemptions Increased as of January 1, 2010. Other California Bankruptcy Exemptions will increase on April 1, 2010

  1. ehanson says:

    Thank you for this. Are the other exemptions going up too, and is there any reason to wait to file if they’re going to go up?

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  3. hm it is very well written article actually i was looking for such information thanks for the posting

  4. Yes. Most of the exemptions will be going up, and I’ll post the actual numbers when they go into effect. The most important may be the debt limits for Chapter 13, which are expected to increase to $360,525 unsecured, and $1,081,500 for secured. (These are the limits for allowed debt in Chapter 13. If your debts exceed that, which is very easy to to in California where housing prices are very high, then you’re limited to Chapter 7 or Chapter 11.) The other important one for Chapter 7 in California is the wildcard. Not sure what that will be yet, but the California Judicial Council should be releasing that shortly.

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  10. […] If you file Chapter 7, and either are current or get current with your mortgage(s), then you can most likely keep your home.  (Assuming you don’t have an equity interest that exceeds the homestead exemption.  As to which, see this blog post:  California Homestead Exemptions Increased as of January 1, 2010. Other California Bankruptcy Exempti….) […]

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