homestead exemption

The 2021 increase to California’s homestead exemption to up to $600,000 stands to change the legal and economic relationship of guarantors with their lenders and vendors who make loans or sell goods or services on credit. Before examining this important change in California’s homestead exemption and its effect on guaranties, some perspective is needed on guaranties themselves.

An old adage says that liens “pass through bankruptcy” unaffected.  As old adages go, it’s right as much as it’s wrong.  Particularly when referring to judgment liens against someones home which are normally subject to “avoidance.”  But a July, 2012 court decision puts that in doubt for Southern Illinois residents.