California Bankruptcy Laws - Homestead Exemption Value
CONSTITUTION, Article 20, Section 1.5, "The Legislature shall protect, by law, from forced sale a
certain portion of the homestead and other property of all heads of families." This requirement is set
forth in Code of Civil Procedure §703.140(b)(1) "The debtor's aggregate interest, not to exceed seventeen
thousand four hundred twenty-five dollars ($17,425) in value, in real property or personal property that the
debtor or a dependent of the debtor uses as a residence, in a cooperative that owns property that
the debtor or a dependent of the debtor uses as a residence, or in a
burial plot for the debtor or a dependent of the debtor."
Operation of California Bankruptcy Laws
Value is determined based upon the fair market price, less amounts owed. "Fair market" is not a retail value
expected by professional sellers or advertisers. Likewise, forced liquidation values are not representative of a
fair market. The value of property is an estimate of an agreement reached
between a willing buyer and a willing seller under current market conditions. Creditors may file objections to
the calculation of equity which may be subject to disbursement.
See also, Federal Exemptions
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