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Message: [QUOTE="Lethe200, post: 2451069, member: 1709"] Remy, this is for you: [B]How the Increased California Homestead Exemption Helps Protect Your Home in Bankruptcy[/B] [URL='https://www.bankruptcypower.com/blog/how-the-increased-california-homestead-exemption-helps-protect-your-home-in-bankruptcy/#:~:text=California%27s%20law%20on%20debt%20collection,homes%20in%20Chapter%207%20bankruptcy']https://www.bankruptcypower.com/blog/how-the-increased-california-homestead-exemption-helps-protect-your-home-in-bankruptcy[/URL]. Posted: December 21, 2021 (excerpt) California’s law on debt collection protects homeowners by preventing creditors from reaching a portion of the equity in the debtor’s primary home. The homestead exemption, as it is known, has helped people avoid losing their homes in Chapter 7 bankruptcy. But as real estate prices climbed over the years, the exemption amount stayed low — so low that many bankruptcy filers had hundreds of thousands of dollars in equity that could not be protected. Finally, in 2021, the California legislature raised the exemption amount in an attempt to remedy this issue. ======== Also, people should be aware that retirement accounts such as 401k, 403b, etc. are protected in bankruptcy. IRAs are protected only up to $1M - this is not codified into law, but is generally accepted due to an IRS lawsuit which had to accept a federal judge's decision regarding large IRAs. However, Inherited IRAs (although I don't think many on SeniorForums have any of these) are NOT considered a "protected retirement asset", by decision of the SCOTUS back in 2016 or 2017, and can be seized by creditors, whether through bankruptcy or legal liability. [/QUOTE]

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