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Homestead bankruptcy exemptions in California

On Behalf of | Dec 23, 2022 | Bankruptcy Exemptions

California homestead exemptions are a set of laws that protect a homeowner’s equity in their residence from being seized to pay off creditors. These exemptions can be particularly useful for individuals facing financial difficulties, such as those who have filed for bankruptcy. This article will give you an overview of the process and will allow you to decide if you should contact an attorney for a consultation.

How does it work?

Under California law, a homeowner may be able to claim a homestead exemption to protect their home from being sold to pay off debts. The amount of these bankruptcy exemptions varies depending on the homeowner’s age, the value of the home, and the type of debt they are facing.

Important details

There are several key aspects of California homestead exemptions that homeowners should be aware of:

  • Homeowners can only claim a homestead exemption on their primary residence. This means that second homes, vacation homes and rental properties are not eligible for the exemption.
  • The amount of the exemption is capped at a certain value, which is adjusted for inflation each year. For example, as of 2021, the maximum exemption is $175,000 for homeowners under the age of 65, and $300,000 for homeowners who are 65 or older.
  • Homestead exemptions are not automatic. Homeowners must claim the exemption by filing a form with the court and providing proof of ownership of the home.


It is important for homeowners to understand their rights and options when it comes to protecting their home from creditors. By consulting with an attorney about claiming a homestead exemption, homeowners may be able to keep their home even if they are facing financial challenges, such as bankruptcy.