Sell Your Bankruptcy House Fast in California

California has four federal bankruptcy districts: the Central District of California (Los Angeles, the single busiest bankruptcy court in the country by filing volume), the Northern District (San Francisco and San Jose), the Eastern District (Sacramento and Fresno), and the Southern District (San Diego) — together they process more bankruptcy filings annually than any other state. California debtors in bankruptcy have an unusual choice: under California Code of Civil Procedure §703.140, they may use the federal bankruptcy exemptions in lieu of California state exemptions — but California is one of a minority of states that has opted out of the federal exemption scheme for non-bankruptcy purposes, so debtors must choose between the California System 1 exemptions (§703 series), California System 2 exemptions (§704 series, which includes the AB 1885 homestead of $300,000-$678,391), or the federal bankruptcy exemptions. The AB 1885 homestead exemption, available through the System 2 scheme, is the strongest protection for California homeowners in bankruptcy — a debtor in San Jose with $600,000 in home equity can fully exempt that equity under the 2024 Santa Clara County median-price-based calculation, potentially keeping the home entirely in Chapter 7. However, California's extraordinary home appreciation in many markets means equity can still substantially exceed even the generous AB 1885 exemption, particularly in prime Bay Area zip codes, making a pre-bankruptcy sale to capture the non-exempt equity — and distribute it to creditors outside the bankruptcy estate — sometimes the better planning option.

• Cash offer within 24 hours
• Close in 7 days or on your schedule
• Buy as-is — no repairs required
• We pay all closing costs
• No agents, no commissions