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California Debt Blog: FAQ: Can I homestead my house to protect it?

January 20, 2007 by Jonathan Stein

Q: Can I homestead my house to protect it from my creditors and any judgments?

A: First, what is a homestead? A homestead is an automatic exemption under California law. (You can also use the exemption if you file for bankruptcy. Note that bankruptcy is a federal matter, but you are allowed to use the California exemption anyway.)

Second, how is a homestad filed? A homestead is automatic. In other words, you do not have to record a document to have a homestead. If you record a document, some banks or other lenders will not lend you money on your property.

Third, does it work? A homestead exemption does not exempt your entire property, but a portion of the value. To determine that, you need to read California law. This can be found at California Code of Civil Procedure 704.730.

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