In California, the primary residence where the debtor lives in is entitled to an automatic homestead exemption against levying in the amount of $50,000 ($75,000 for married couple or head of household, or $125,000 for elderly debtors). It does not have to be a declared homestead, i.e., where the owner records a homestead declaration with the county recorder. A lot of people don't know this, so the fact that she entered "N/A" might have had to do with her thinking that she had to record a declared homestead. Or, it could indeed have been that this was not her primary residence so then it would not qualify as a homestead.

If her house has less equity than the homestead exemption amount, then the house is entirely exempt in the bankruptcy. Judgment liens on exempt property can be avoided in bankruptcy if they "impair" the exemption. That is why her attorney moved to avoid your liens. You or your attorney should read her motion and see if that was indeed the case, or if it's still even her primary residence. It should all be described in the motion to avoid liens.

Larry L. Doan, Esq.

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