In a collection matter, how to homestead laws work if you move move from one state to another?

I am going to retire and had planned on moving out of state. Under the homestead exemption in my current state I would be exempt from $75,000. My new state’s exemption is about $5,000 for a homestead. Which would they be able to use in a collection?

Asked on October 14, 2011 under Bankruptcy Law, California

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

Dpeneding upon which state you designate as your primary residence is the state where the homestead exemption will apply assuming you have homes in two different states. For example, if you move out of California where your homestead exemption on your home is $75,000 and sell your home, you lose the exemption in California.

If you move out of California and take a primary residence in another state, then that state's homestead exemption laws apply if you buy real property in that state. If you keep two homes in different states, the homestead exemption of the state that you deem your primary residence controls.

Accordningly, you might consider keeping you California residence as your primary residence.

Good luck.


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