On January 1, 2010 homestead exemptions rose to $75,000 and $100,000 of home equity for single and married debtors declaring Bankruptcy. In places like Los Angeles and Pasadena, this can be critical because protecting whatever equity may be left in your home could be important in determining whether Bankrtupcy Protection is worthwhile. Protecting as much equity as possible becomes a key variable for any person considering Bankruptcy in Southern California, and as of the beginning of the year, Angelinos just gained a little more protection.
However, recording a judgment lien against real property "freezes" the amount of the homestead exemption the person can claim under California's nonbrankruptcy exemptions. Moreover, any subsequent statutory increase in the exemption amount does not apply to the judgment lien creditor. This means that despite this generous increase, if you already have a judgment against your home, the added protection does not apply that particular debtor.
This is just one example of why a Pasadena Bankruptcy Attorney is important to have when considering filing Bankruptcy when you own a home. I will help you protect what assets you have and to maximize your protections under the law.
