What is Homestead Exemption?
A homestead exemption is a legal protection that shields part of the equity in a person's primary residence from certain creditors. In California the protected amount is set by statute and adjusts over time, helping homeowners keep equity in a forced sale or bankruptcy. It generally applies only to a home the owner actually lives in.
Example: A California homeowner facing a creditor judgment relies on the homestead exemption to protect a portion of the home's equity from being taken.