California Homestead Exemptions Increase in 2010

Effective January 1, 2010 the California homestead exemption will increase and it is about time. A single person will be allowed $75,000; a married couple $100,000 and elderly or disabled persons $175,000. Although this is a welcome adjustment, some of our clients still have equity in excess of the exemption and depending on the amount of non-exempt equity, the Trustee may not determine there to be enough equity to liquidate and distribute to creditors. The Trustee is entitled to a percentage of the money recovered and if no funds are left for the benefit of creditors thereafter the trustee will abandon the asset to the creditor.