California homestead exemption increase. Ccp 703140 b 1. For more information about the homestead declaration and information on low income exemptions please contact your legal adviser or refer to the california code of civil procedure sections 704710 704850 and 704910 704995. Even though the bill passed in the senate it was voted down by the assembly and did not become law.
75000 for a married couple. In california court sales such as foreclosures the homestead exemption is automatic as long as you live in the home as your primary residence. Last year a bill was introduced in the california legislature by state senator bob wieckowski a bankruptcy attorney to increase the exemption amounts from 75000100000175000 to 100000150000300000.
Most importantly unlike the automatic exemption your homestead is not. Filing a declaration of homestead does not increase the exemption maximum amounts but does offer some extra protection. The current amounts arent reflected in the statute.
Californias homestead exemption is the super hero of the exemption world. The limits on homestead exemptions in california. While other exemptions protect things worth a thousand dollars here and a couple of thousand there the homestead protects big bucks.
Considering that california home values tend to be on the high end our homestead exemption amounts are not generous at all. 175000 homestead exemption if you are age 55 or over and your gross annual income is 15000 or less or you are married and your combined income is 20000 or less gross annual income is your gross income for the 12 months prior to filing the bankruptcy petition. The system 2 homestead amount changed from 26800 to the current amount of 29275.
For the elderly or disabled the homestead balloons to 175000. Its 75000 for a single person and 100000 for a couple. You can only have one legal homestead so if you have.
California last changed the exemption amounts on april 1 2019. The remainder is taxed at the normal rate. The homestead declaration must be recorded with the county recorder to be valid.
The system 1 homestead amount remained unchanged.