Is my understanding of the homestead exemption correct?

[jims86lxihb]

I've really searched hard on the net to wrap my head around this one. I just want to make sure I understand the homestead exemption and how it applies in my proposed ch7 case.

Home loan payoff for both 1st and 2nd mortgage $95,395

Propery value appraised on 3/15/2011 $140,000

California homestead exemption for married couples $100,000

Subtracting $95,395 from appraised value of $140,000 = $44,605 in equity

$44605 equity minus $100,000 homestead exemption = $55,535 in unused homestead exemption

^ $55,535 in unused homestead exemption allows for the use of the system 2 wildcard exemption of $20,725 to be used.

So, do I understand the homestead exemption correctly?

[jq26]

Homestead exemption applies to equity only, so yes. But I cannot confirm the #s and wildcard structure, because they may be state specific.

[jims86lxihb]

Thanks for the reply.

I found out in California you either use system one to shield up to $100,000

in equity for married couples. Or you use system 2 when you have little to no equity. The two systems cannot be combined like I had hoped.

So in my case I'll be using system one.

[jq26]

Well there ya' go. By the way, that's a generous homestead exemption. In most states, that wouldn't fly by a long shot. So not too bad all in all.