San Diego Home Equity is on the Rise
You can file bankruptcy and keep your house. On the positive side, home equity can be protected when filing bankruptcy. For example, in San Diego, residents can protect as much as $600,000 or more in home equity. Now, more than ever, San Diegans are spending lots of time enjoying their homes with their families. Similarly, our homes are where we congregate as a family unit and celebrate special events.
San Diegans LOVE the equity in their homes. Indeed, over the last 10 years, San Diego residents have enjoyed the largest increase in their home equity in US history! By all accounts, San Diego homes gained over 600% in equity over the last ten (10) years. Above all, this increase in equity allowed San Diegans to use that equity to make improvements to their homes and further increase the values of their homes!
All of this equity comes with some caveats. Specifically, when a homeowner is drowning in debt, too much equity requires the homeowner to consult with a bankruptcy expert to protect the equity and still determine the best way to get out of debt. Here, Attorney Mark L. Miller discusses home equity and bankruptcy.
Protect home equity when filing Chapter 7 or Chapter 13 Bankruptcy
Of course, all this equity must be protected. In September 2020, California enacted Assembly Bill 1885 (AB1885). This law increases home equity for personal residences in California. Most importantly, the new homestead will start by protecting a substantial amount of equity. For example, in San Diego, residents can protect as much as $600,000 in home equity. Specifically, the amount is based on the median price of homes sold within your San Diego neighborhood. Over time these amounts will increase with the the cost of living and as home values appreciate over time.
File Bankruptcy and Keep your House
For example, our home is where we hold communal meals and celebrate our most important and private family events and milestones. Similarly, we memorialize holidays, birthdays, graduations and other important life events which makes protecting the home equity all that more important. Obviously, our house, and its equity, are the basis and foundation for many uniquely American institutions.
Accordingly, in order to get out of debt, it is very important that San Diego homeowners consult with an experienced bankruptcy attorney to determine the amount of protected equity and how best to protect that equity. Further, by working with the attorney, the San Diego homeowner can ensure the maximum protection for your home equity under law.
File a California Homestead to Protect your House in Bankruptcy
As a starting point, equity in your home is protected by a simple legal principle called a “Homestead”. Simply put, a homestead describes where you live! Moreover, ‘homestead’ is the most basic idea and concept of a central family unit. San Diego home ownership recognizes that someone's residence (their house!) is extremely important.
Significantly, file bankruptcy and keep your house through homestead law. A "homestead" protects the equity in a residence. So long as the property is your primary residence, you can file a homestead exemption. Indeed, the homestead document quite simple. Furthermore, it is easy to fill out as can be seen here: https://arcc.sdcounty.ca.gov/Documents/DH.pdf. Likewise, instructions on how to properly fill out the Homestead Declaration can be found here: https://firstamsandiegolinks.com/uploads/blankdocs/311.pdf.
In fact, if you are feeling good about your tax planning, you can try your hand at a “Claim for Homeowner’s Property Tax Exclusion” here as well: https://arcc.sdcounty.ca.gov/Documents/266HOXCLAIM.pdf. In any event, there are a multitude of self-help products online to assist the homeowner in protecting the home equity. To summarize, protect the equity in your home and file a Homestead Declaration today!!!!!
To end on a positive note, California law now allows you to file bankruptcy and keep your house. That is, wipe out your debt and keep the equity in your residence. Importantly, the amount of equity San Diego residents protect is now as much as $600,000 or more!
Certainly it has never been easier to file for bankruptcy, wipe out your debt and protect your home. Contact us today to keep your house, protect the equity in your house and get out of debt.