California recently increased the amount of homestead exemption that can be claimed. The new law went into effect January 1, 2021. Under Assembly Bill 1885, for example, the amount of homestead exemption that can be claimed in a Bankruptcy case in Bakersfield and Kern County is the greater of $300,000 or the median cost of a home in the preceding year. As of January 1, 2022, the median value of a single family home is $335,000. This means your equity is protected up to $335,000. In other parts of California, the value of the exemption can be as high as $600,000.
There are important factors that must be taken into account to qualify for the homestead exemption. Seek competent legal advice from a Bankruptcy attorney in Bakersfield to make sure you are protected.
