20 Oct California Homestead Amounts To Increase
Governor Schwarzenegger signed into law new legislation that raises the amounts that can be claimed as a homestead in California. The law, Assembly Bill 1046 is one of several new pieces of California legislation aimed at protecting homeowners.
Previously, the equity in your home was exempt from execution or in a bankruptcy filing up to $50,000 for an individual; $75,000 for a married couple (or head of household) and $150,000 for a disabled person or someone 65 or older, or 55 or older with limited income. But, as of January 1, 2010, these limits will go up by $25,000 each; to $75,000, $100,000 and $175,000 respectively.
Note that under current Bankruptcy law, there may be limitations on the amounts listed above if you recently moved to California and purchased your home. Additionally, as my friend and colleague, Susanne Robicsek explained, just because you have exempt equity in your home, doesn’t guarantee you can keep it in bankruptcy, especially if you aren’t making your payments.
Although this increase will go into effect on January 1, 2010, further changes to exemption amounts will go into effect on April 1, 2010 as they did in 2007.
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