HOMESTEAD
EXEMPTIONS IN
CALIFONRIA NATHAN A BERNEMAN APC
The Homestead Exemption is a clause that was created to help prevent a home from being seized by a debt collector in the event of the death of one spouse or filing bankruptcy.
When it comes to bankruptcy, one of the biggest protections that you have is the Homestead Exemption. Creditors can force the sale of nearly anything that you own in an attempt to get their money back.
This means that they can force the sale of cars, furniture, electronics and more and in some cases, they can force the sale of homes and other property.
In most states there is a predetermined amount that the home or the property cannot exceed before you are required to downsize and use the extra money to pay back your creditors.
Homestead Exemption Law in California
In the states of California you can use the Homestead Exemption to help you with a range of different financial issues. You can use it to help provide some relief from property taxes.
In California it helps to protect your property from being seized and liquidated to pay back creditors. When it comes to the amount, your home can be worth $75,000 for a single person, you can own a home worth $100,000 for a family and seniors can have a home that is worth $175,000 before you are required to sell the home and give back some of the money.
New California Homestead Exemption Amount
Today, the exemption has been changed and the previous $175,000 maximum has been changed to $300,000 of the sale price of a home.
It can be more depending on the county in which you live up to $600,000. In many cases this will not affect homeowners that are not applying for the exemption for tax or bankruptcy purposes. If you do file a homestead exemption it may change the way that your home was previously counted.
How to File Homestead Exemption in California?
When it comes to getting the exemption not all people are going to benefit from it. If you have a home that you do not own and that you have no equity in, for example, this type of exemption is not going to do much for you.
If you do have a home that has equity and you have trouble financially it is going to be beneficial to file as it will protect that equity. In order to file it is always helpful to get an attorney that can help you to go through the process and be certain that all pertinent information is provided and that your filing is complete so that it does not get rejected.
How Do I Qualify for Homestead Exemption in California? You cannot file this exemption, and really do not need to, if you have a home that you have no equity in as you can reaffirm your loan and just keep paying. If you are a single person and you own a home that has equity in it you can have equity up to $300,000.
If you are a family that amount goes up to at most, $600,000. You do need to have some equity that can be liquidated in a home in order to be able to qualify.
When it comes to filing this sort of exemption, it is always best to get an attorney that knows the ins and outs of bankruptcy law so that you can get the best options possible and so that you can get your home fully protected in the event that you do need to file for bankruptcy.