What Qualifies As A Homestead In Chapter 7 Bankruptcy?

In California you can file Chapter 7 bankruptcy and keep your real estate as long as the Homestead Exemption applies. Cal. Cod. Of Civ. Pro §704.730(a) states, “(a) The amount of the homestead exemption is the greater of the following: (1) The countywide median sale price for a single-family home in the calendar year prior to the calendar year in which the judgment debtor claims the exemption, not to exceed six hundred thousand dollars ($600,000). (2) Three hundred thousand dollars ($300,000). (b) The amounts specified in this section shall adjust annually for inflation, beginning on January 1, 2022, based on the change in the annual California Consumer Price Index for All Urban Consumers for the prior fiscal year, published by the Department of Industrial Relation.” The amount of the homestead exemption is based on the median sales price of homes within the County the home sits.

But what is a Homestead. A Homestead is the principal dwelling (1) in which the judgment debtor or the judgment debtor’s spouse resided …, and (2) in which the judgment debtor or the judgment debtor’s spouse resided continuously thereafter until the date of the court determination that the dwelling is a homestead. [Cal. Cod. Of Civ. Pro §704.730(c)]. A dwelling is “(1) A house together with the outbuildings and the land upon which they are situated. (2) A mobile home together with the outbuildings and the land upon which they are situated. (3) A boat or other waterborne vessel. (4) A condominium, as defined in Section 783 of the Civil Code. (5) A planned development, as defined in Section 11003 of the Business and Professions Code. (6) A stock cooperative, as defined in Section 11003.2 of the Business and Professions Code. (7) A community apartment project, as defined in Section 11004 of the Business and Professions Code.” [Cal. Cod. Of Civ. Pro §704.730(a)].

If you reside in California, the exemption does apply and can be claimed for your trailer or mobile home. In California, both a trailer and a mobile home, just like a house permanently built on a permanent foundation, qualify to receive all of the benefits of the homestead protection. That is as long as it’s the debtors “principal dwelling”.