Homestead declaration-what does it protect?
I understand that by filing a homestead declaration ahead of a judgement, the first $125,000 of home equity is protected. Assuming that the prevailing party forces the sale of the home to collect the judgement and the proceeds are insufficient to pay the judgement, are the proceeds from the homestead then subject to further attachment if placed in a bank account in California?
1 Answer from Attorneys
Re: Homestead declaration-what does it protect?
If you have less equity than the homestead amount, then no sale can be forced. If equity exceeds the homestead and the house is sold, the protected amount can be banked for 6 months to give time to buy another house.