As of January 1, 2021 The California homestead exemption has increased. The new law will allow more people to qualify to file for a bankruptcy.
The new legislation Assembly Bill 1885, which was signed by California Governor Gavin Newsom. This Bill will increase the homestead exemption and will be adjusted accordingly every year based on single family home values of the previous year. This will allow individuals to file for bankruptcy with more equity in their home, You may now have a minimum of $300,000 equity for your home, which was previously only $75,000. You may also have more equity if your home resides in Los Angeles and the surrounding areas, where the home values are more than the countrywide average. You may have up to $600,000 equity in your home and still file a chapter 7 bankruptcy. A chapter 7 bankruptcy will wipe out your credit card debt and protect your home from creditors.