California Homestead Exemption

How Does the California Homestead Exemption Help?

The California Homestead Exemption protects equity in your home from creditors. Here you will find specific information about the homestead exemption in California.

If you file for bankruptcy in California and are eligible to use California bankruptcy exemptions, you can choose from two exemption systems, often called System 1 and System 2.

In California bankruptcy exemption – System 1, single homeowners who are not disabled may exempt up to $75,000 of the equity in their home or other property covered by the homestead exemption. You may exempt up to $100,000 if you live with a family member; $175,000 if you are 65 or older, or physically or mentally disabled; $175,000 if 55 or older, single, and earn a gross annual income under $15,000 or are married and earn a gross annual income under $20,000 and creditors seek to force the sale of your home. If you are married but separated, you may claim the homestead exemption in community property occupied by your spouse.

In California bankruptcy exemption System 2, homeowners can exempt up to $26,800 of the equity in their home.

In California System 1 the homestead exemption applies to real or personal property where you reside, including a mobile home, boat, stock cooperative, community apartment, planned development, or condominium. In System 1, the homestead exemption also applies to proceeds from a forced sale of your home received six months prior to bankruptcy.

In California System 2 the homestead exemption applies to real or personal property that the debtor or a dependent of the debtor uses as a residence, including a cooperative, or a burial plot for the debtor or dependent of the debtor.

Learn More About Bankruptcy Exemptions

California Bankruptcy Exemptions

Motor Vehicle Exemptions

Bankruptcy and Pensions – State & Federal Exemptions

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At Hindley & Henderson Law, we take great pride in educating our clients – empowering you to fully understand your options and working with you every step of the way. Our bankruptcy attorneys have over 30 years experience helping individuals and business use bankruptcy to reorganize their debt and get a fresh start. Do you have more specific questions?

Contact Us to schedule a free initial bankruptcy consultation with Reginald Hindley or Ryan Henderson today.