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

UPDATED: Oct 14, 2011

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

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


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 11 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.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption