If creditors are attempting to seize your home’s equity in order to recoup debts, a California homestead exemption may be able to help. During your free examination, it will be thoroughly explained whether or not you’re eligible and which of the several homestead alternatives might work best for you. However, to help you understand your alternatives, The Law Offices of Paul Y. Lee is offering the following information and a free bankruptcy consultation.
Your Homestead Exemption Amount Will Vary Depending on a Number of Factors
First off, be aware that Chapter 7 and Chapter 13 bankruptcy proceedings in California are both subject to the homestead exemption. There are two systems to select from, commonly referred to as System 1 and System 2, if you are entitled to use the bankruptcy exemptions in California.
The maximum amount you can exempt will differ if you select System 1. These are a few examples: Single, non-disabled homeowners might qualify for an exemption of up to $75,000 from taxes. Homeowners who share a residence with another member of their family may be eligible for a $100,000 exemption.
A person who is 65 years of age or older, physically or mentally incapacitated, may be exempt from paying up to $175,000 in taxes. An exemption of up to $25,000 may be available to anyone who are unmarried, 55 years of age or older, and make less than $25,000. A person may be qualified for an exemption of up to $25,575 under California’s System 2.
Be Careful of Constraints
Due to the complexity of the California Homestead Exemption procedure, we advise you to contact The Law Offices of Paul Y. Lee at 951-755-1000 for your examination. To qualify for the homestead exemption, you must have held your property for at least 1,215 days before to filing for bankruptcy. All 50 states that must comply with this federal statute.
A married couple who files for bankruptcy jointly may be eligible to increase their homestead exemption by twofold in several states. The double exemption is not available to married couples in California because the state forbids it.
California does not have one of the laws that permit people filing for bankruptcy to opt to use federal bankruptcy exemptions. Either California System 1 or System 2 must be selected.
You don’t have to submit a homestead declaration in order to be qualified to use the exemption in your bankruptcy. Rather, it happens automatically when you file. Having said that, you could submit the declaration to further safeguard the exemption from liens and the money received if you choose to sell your house on your own.
Are You Prepared to Receive Your Free Bankruptcy Assessment?
You’re not the only one who finds the California Homestead Exemptions rules to be unclear. Many people who attempt to manage their own bankruptcy find themselves overwhelmed and unable to achieve the best results. We have years of expertise helping people just like you at The Law Offices of Paul Y. Lee. It’s time for your free bankruptcy review if you want to keep your assets and equity. Contact us at 951-755-1000 right away to get going.