09/24/2020
https://www.forbes.com/sites/jayadkisson/2020/09/19/california-increases-homestead-exemption-in-new-legislation/
Signed into law 09/18/2020. The increased homestead exemptions are effective 01/01/2021.
The current homestead exemption amounts of between $75,000 to $175,000 are now increased to the greater of the following:
(1) The countywide median sale price for a single-family home in the calendar year prior to the calendar year in which the judgment debtor claims the exemption, not to exceed six hundred thousand dollars ($600,000).
(2) Three hundred thousand dollars ($300,000)
This amounts to a homestead exemption of $600,000 for homeowners in Los Angeles County and Orange County. This increase is a significant benefit to homeowners in California specifically when filing for bankruptcy. Those homeowners can now protect equity in their homes up to $600,000 while elimiating their debts in bankruptcy (subject to income qualification).
California Assembly Bill AB1885 increases the homestead exemption to a minimum of $300,000 and a maximum of $600,000 depending on median county home prices.
