California Bankruptcy Laws - Homestead Definition

Code of Civil Procedure §704.710. "As used in this article: (a) "Dwelling" means a place where a person resides and may include but is not limited to the following: (1) A house together with the outbuildings and the land upon which they are situated. (2) A mobile home together with the outbuildings and the land upon which they are situated. (3) A boat or other waterborne vessel. (4) A condominium, as defined in Section 783 of the Civil Code. (5) A planned development, as defined in Section 11003 of the Business and Professions Code. (6) A stock cooperative, as defined in Section 11003.2 of the Business and Professions Code. (7) A community apartment project, as defined in Section 11004 of the Business and Professions Code."

In practice, creditors may file objections regarding the extent of the exemption, designation, and liens which arise through operation of law. California bankruptcy courts are wary of all sales to insiders before and during the pendency of all cases. Also, home improvement loans which draw down equity before filing are scrutinized under both the state fraudulent conveyance statutes and federal fraudulent conversion statutes. A trustee, creditor, party in interest, or the court on oit own motion may file objections.

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