On September 18th Governor Gavin Newsom signed into law an expansion on the Homestead bill that increases the amount of equity that can be protected from creditors when filing bankruptcy.

AB 1885 increases the California homestead to the greater of $300,000 or median sales price in the County where the single-family home is located in the prior year, not to exceed $600,000.

Here are the current local median sales prices as of September 2020:

• Placer County – $529,595.00
• Sacramento County – $402,230.00
• Butte County – $329,998.00
• San Joaquin County – $389,858.00
• Solano County – $459,751.00

Long story short, it is now far easier to file bankruptcy and save your home than ever before. In addition, those who otherwise would have been forced to file a chapter 13 in order to protect their equity, may now be eligible to file a chapter 7 bankruptcy dependent upon income and household size.

For more information contact your Stockton Bankruptcy Attorney at 209-952-0355.

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