The California homestead exemption is the amount of value in your home that is protected from your creditors. That means you get to keep that much equity even if you file for bankruptcy. In 2026, the amount of the exemption is between $371,547 and $743,459. The exact amount depends on where you live.
How Does the Homestead Exemption Work?
The homestead exemption is a legal protection for the property where the homeowner lives. It doesn’t apply to other types of real property, such as vacation homes or rental property. This exemption prevents creditors from attaching the home to satisfy a judgment, and also protects a certain amount of value in the home if the homeowner files Chapter 7 bankruptcy.
It’s important to note, though, that the homestead exemption doesn’t apply against the lender when the home serves as security for a loan. In other words, the homestead exemption won’t stop a mortgage foreclosure.
The amount of the homestead exemption varies significantly from state to state. A few states have no homestead exemption. Others protect very small amounts, such as $5,000 or $15,000. At the other end of the spectrum, a handful of states have an unlimited homestead exemption, meaning that the full equity in the residence is protected, no matter how high that number is. California falls in between, with a generous but not unlimited homestead exemption.
How Much Equity in My Home is Protected in California?
The California homestead exemption is a bit more complicated than most states’ exemptions.
First, a California bankruptcy filer gets to choose between two sets of exemptions. One is specifically designed to help California homeowners protect their property, while the other provides a wildcard exemption to let bankruptcy filers who don’t own homes decide what property to protect.
Under the set of exemptions designed for homeowners, there is currently no specific dollar amount that applies in every case. When the new homestead exemption law took effect in 2021, the homeowner could exempt the greater of $300,000 or the county-wide median sale price for a single-family home in the prior calendar year. However, the exemption was capped at $600,000.
Those numbers are adjusted every year. In 2026, the minimum homestead exemption under this set of exemptions is $371,547 and the cap is $743,459. In other words, the exemption available to a California homeowner in 2026 will be at least $371,547, but may be nearly twice that depending on home values in the area.
California’s Homestead Exemption Offers Powerful Protection for Homeowners
Before the homestead exemption was increased in 2021, many California homeowners overwhelmed by debt such as large medical bills, high balances on high-interest credit cards and other unsecured debt found they couldn’t file for Chapter 7 bankruptcy without surrendering their homes. Of course, most people want to keep their family homes, and many considering bankruptcy couldn’t afford a change in residence if they wanted to. That limitation stopped too many people from getting the fresh start they needed.
With high home values in Los Angeles, that obstacle may still exist for some homeowners. But, as of April of 2026, the median equity in Los Angeles homes was $572,000. That’s below the exemption cap.
Chapter 13 Bankruptcy May Be a Solution for Filers with High Home Values
Some Los Angeles residents whose home equity exceeds the homestead exemption may have the option of filing for Chapter 13 bankruptcy. But, Chapter 13 is a different type of solution that generally serves people with different circumstances. If you have significant equity in your home and are unsure about whether bankruptcy is an option, talk to a Los Angeles bankruptcy lawyer about the two types of bankruptcy and how each might play out for you.
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Frequently Asked Questions About California’s Homestead Exemption
What is the homestead exemption in California bankruptcy?
The California homestead exemption is the amount of value in your home that is protected from your creditors. That means you get to keep that much equity even if you file for bankruptcy.
How much is the California homestead exemption in 2026?
In 2026, the minimum homestead exemption is $371,547 and the cap is $743,459. The exact amount available to a California homeowner depends on home values in the area.
What property does the California homestead exemption protect?
The homestead exemption is a legal protection for the property where the homeowner lives. It doesn’t apply to other types of real property, such as vacation homes or rental property.
Can the California homestead exemption stop a mortgage foreclosure?
No. The homestead exemption doesn’t apply against the lender when the home serves as security for a loan. In other words, the homestead exemption won’t stop a mortgage foreclosure.
How is the California homestead exemption amount determined?
When the new homestead exemption law took effect in 2021, the homeowner could exempt the greater of $300,000 or the county-wide median sale price for a single-family home in the prior calendar year, subject to a $600,000 cap. Those numbers are adjusted every year. In 2026, the minimum is $371,547 and the cap is $743,459.
Can I file Chapter 7 bankruptcy and keep my home in California?
The homestead exemption protects a certain amount of value in a homeowner’s residence if the homeowner files Chapter 7 bankruptcy. Whether the exemption is enough to protect a particular home depends in part on the amount of equity in the home and the exemption available in the area.
What if my home equity exceeds the California homestead exemption?
Some Los Angeles residents whose home equity exceeds the homestead exemption may have the option of filing for Chapter 13 bankruptcy. Chapter 13 is a different type of solution that generally serves people with different circumstances.
How much was the median home equity in Los Angeles as of April 2026?
As of April of 2026, the median equity in Los Angeles homes was $572,000. That was below the 2026 homestead exemption cap.