Скачать или смотреть Why You Might Want To Record Your Homestead Declaration With A California Bankruptcy Lawyer

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Filing a homestead declaration in bankruptcy is not essential; it can be outside of bankruptcy. To understand what's at work here, we must distinguish between a “voluntary” and “involuntary” sale of your home.
A voluntary sale is when you decide to sell your house. You put it on the market, somebody puts in a bid, you accept the bid, and it's sold.

An involuntary sale is when somebody forecloses on your home. That can happen if you fail to make your mortgage payments. In that case, the mortgage company avails itself of California real estate law by seizing and selling the property.

Involuntary sale could also happen as a result of litigation. Perhaps somebody sues you successfully, gets a judgment against you, and records a lien against your home. In that situation, if the lien is sufficiently large and there is enough equity to cover that lien, that judgment creditor may seek to conduct a foreclosure.

If you don't record the homestead declaration, you have the automatic homestead exemption. That protects you against involuntary sales that will leave you without anything. You do at least get your equity exemption.
There are some wrinkles. Suppose you have a voluntary sale. Somebody gets a judgment against you and wants to go after the money you received from the sale. Is that money protected? No, unless you record that homestead exemption.

If you record the homestead exemption, that money is protected for up to six months. That means you must reinvest that money within those six months into a new domicile. You can't spend the money on a cruise. Then, you want to record the homestead exemption on that new house, giving you the homestead protection that goes from the old house to the new house.

You can have only one domicile or principal residence. If you sell your house, that extinguishes the recorded homestead, which is why you'd want to record a homestead on the new property.

Suppose you bought another home besides your principal residence, moved in and recorded the homestead exemption. If you use this place as a rental property, the homestead on the first property will automatically be extinguished. You can only have one homestead, which must be on your principal residence.

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