California Homestead Exemption
While some states in America allow a debtor to choose from either state or federal exemptions, in a California bankruptcy you must use the state’s list of exemptions. There are many exemptions that cover other personal property such as jewelry, household items, bank deposits, and retirement accounts, but the real property that individuals own is often the most valuable and therefore the most important. There are two different sets of exemptions to choose from. You’ll want to discuss these options with your bankruptcy attorney in Fairfield California to find out which is the best for your personal situation.
California Bankruptcy Homestead Exemption Amounts
As mentioned earlier, when filing bankruptcy, you’ll select from one of two systems to safeguard the equity in your home. Under the 704 exemptions of the California Code of Civil Procedure, you can exempt up to $75,000 in home equity if you are single with no dependents, $100,000 if you live with a family member, and $175,000 if you are 65 and disabled or 55 and have both a low income. Under the 703 exemptions, you can exempt up to $26,800 in home equity.
When you are filing for bankruptcy in Fairfield, Calfornia the homestead exemption is automatic.
Additional requirements or restrictions may apply to your unique situation, so make sure to enlist the legal aid of an experienced bankruptcy law firm before filing for Chapter 7 or Chapter 13 bankruptcy. California has its own set of exemptions that your Fairfield bankruptcy attorney will understand and be able to help utilize to your advantage when applying for debt relief.