Are you aware that the homestead exemption for personal residences increased on January 1, 2021? Here is what you need to know:
So, What is a Homestead Exemption?
The homestead exemption will be applied when a creditor tries to enforce a judgment against a qualified residence. Typically, this does not apply to enforcing property taxes, assessment liens, or liens from the state or federal government. Please, speak with your attorney for more information about what does not apply.
Breakdown of the Updated Code (§ 704.730):
Previously, a specific portion of the equity was marked exempt from being used to satisfy a judgment debt. The amount was between $75,000 and $175,000. Now, it is between $300,000 and $600,000. Remember, the amount will vary on your marital status or if you are over the age of 65.
The amounts will be adjusted every year for inflation beginning next year (January 1, 2022). And, the amount will be determined by the change in the annual California Consumer Price Index for All Urban Consumers.
Need More Information?
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