Understanding What Brace Giveth to Creditors, and
the New Homestead Laws Taketh Away:
Update on the Ninth Circuit’s Brace Decision and California’s New Homestead Exemption Laws
Monique D. Jewett-Brewster, Esq., Hopkins & Carley
Wayne A. Silver, Law Offices of Wayne A. Silver
Michael G. Kasolas, Chapter 7 Trustee
In deciding In re Brace in July 2020, the California Supreme Court determined that regardless of the proceeding (divorce, bankruptcy, etc.), the Family Code “community property” presumption trumped the Evidence Code “record title” presumption that property held in joint tenancy title was the separate property of each spouse. Guided by the California Supreme Court’s answer to its certified question, the Ninth Circuit ruled on November 9, 2020 that a house acquired by the married joint debtors after 1975 was community property despite the deed titled as joint tenancy—potentially bringing equity into the estate. In contrast, new Assembly Bill 1885, which takes effect January 1, 2021, increases the homestead exemption for homeowners to a maximum of $600,000, thereby decreasing the equity a trustee may be able to bring into the estate. Panelists Monique D. Jewett-Brewster, Wayne A. Silver and Chapter 7 trustee Michael G. Kasolas will discuss these new developments, as well as the legal and economic impact they are likely to have upon debtors, judgment lien holders and bankruptcy trustees.
January 21, 2021
Program: 5:30 pm - 6:30 pm (Webinar Format)
The Bay Area Bankruptcy Forum is a State Bar of California approved MCLE provider. PROVIDER NO. 1287The Bay Area Bankruptcy Forum certifies that this activity has been approved for MCLE credit by the State Bar of California in the amount of 1 hour (of which applies to general education).