Re: Homestead exemption

$50,000 unless they are disabled or over 65.

Re: Homestead exemption

Code of Civil Procedure section 704.730 states that if you're not disabled, have no other family members in the household, your income is over $15,000 and you're under 65 (whew!), it's $50,000:

The amount of the homestead exemption is one of the following:

(1) Fifty thousand dollars ($50,000) unless the judgment debtor or spouse of the judgment debtor who resides in the homestead is a person described in paragraph (2) or (3).

(2) Seventy-five thousand dollars ($75,000) if the judgment debtor or spouse of the judgment debtor who resides in the homestead is at the time of the attempted sale of the homestead a member of a family unit, and there is at least one member of the family unit who owns no interest in the homestead or whose only interest in the homestead is a community property interest with the judgment debtor.

(3) One hundred fifty thousand dollars ($150,000) if the judgment debtor or spouse of the judgment debtor who resides in the homestead is at the time of the attempted sale of the homestead any one of the following:

(A) A person 65 years of age or older.

(B) A person physically or mentally disabled and as a result of that disability is unable to engage in substantial gainful employment. There is a rebuttable presumption affecting the burden of proof that a person receiving disability insurance benefit payments under Title II or supplemental security income payments under Title XVI of the federal Social Security Act satisfies the requirements of this paragraph as to his or her inability to engage in substantial gainful employment.

(C) A person 55 years of age or older with a gross annual income of not more than fifteen thousand dollars ($15,000) or, if the judgment debtor is married, a gross annual income, including the gross annual income of the judgment debtor's spouse, of not more than twenty thousand dollars ($20,000) and the sale is an involuntary sale.

Incomplete Homestead exemption information so far

Hello.

Mr. Cohen has provided a copy of the Calfornia homestead exemption that is most often used to protect your home (actually there are 2 different homesteads in California that are available in bankruptcy.) What he has not explained is that under the new Bankruptcy law there is a limitation to $125,000 in some circumstances based on how long you have lived in the home. There are other circumstances where you are not allowed to use the exemptions for the state you are living in and have to use the exemption of the state you were living in 2-2 1/2 years ago. You need to be very careful when you have a home at stake. Partial answers that leave out the exceptions can and will cost people their homes.

I am Gary Fraley. I have practiced bankruptcy law since 1978 and am a California State Bar Board of Legal Specialization Certified Specialist in Bankruptcy Law. My office is in Sacramento CA.

If you wish to discuss your situation I provide a free legal consultation. I can't give you my phone number or web site through this site but you can find me online. Just type in my name "Gary Fraley" or "Fraley & Fraley". I don't advertize in the phone books and as far as I know I don't think I am even listed there.

I look forward to the opportunity to help you.

-- Gary Ray Fraley, Esq.