What specific steps do I take to claim the homestead exemption to protect my home's equity in a California bankruptcy?

To claim the homestead exemption in a California bankruptcy, you must list your home and claim the exemption on your official bankruptcy forms, specifically Schedule A/B and Schedule C. Here are the specific steps to take: Step 1: Choose Your Exemption System Before filing, you must choose between California's two exemption systems: the "704" system (CCP § 704.720-704.730) or the "703" system (CCP § 703.140). You cannot mix and match. For homeowners, the "704" system is almost always the best choice because it contains the generous homestead exemption. Step 2: Gather Your Property Documents Collect all documents related to your home. This includes the property's legal address, a recent estimate of its fair market value (from an appraiser or real estate websites like Zillow), and the current balances of all mortgages and liens against the property. Step 3: List Your Home on Schedule A/B In your bankruptcy paperwork, you must list your home and its full market value on "Schedule A/B: Property." Be as accurate as possible with the value. Step 4: Claim the Exemption on Schedule C This is the key step. On "Schedule C: The Property You Claim as Exempt," list your home again. You must then claim the homestead exemption by citing the specific law: California Code of Civil Procedure § 704.730. State the amount of equity you are protecting, up to the maximum allowed by law. Important Details and Nuances: The California homestead exemption protects equity between a minimum of $300,000 and a maximum of $600,000 (these figures are indexed to inflation and change), depending on the median home price in your county. You do not need to have a separate "declared homestead" recorded to use this "automatic" exemption in bankruptcy. The bankruptcy trustee and creditors have 30 days after your "meeting of creditors" to object to your claim. Warnings and Limitations: If your home equity is greater than the maximum exemption amount, the bankruptcy trustee can sell your home. You would receive your exempt cash amount from the sale proceeds, and the rest would be used to pay your creditors. Do not misrepresent your property's value, as this can lead to severe penalties, including the denial of your bankruptcy. This is general information and does not constitute legal advice. For complex situations, or to ensure you are using the correct exemption amounts and procedures, consult with a qualified California bankruptcy attorney.