This bill establishes new homestead and bank account exemptions for individuals in debt, particularly in the context of bankruptcy. It defines "homestead" to include various types of primary residences, such as dwelling houses, condominium units, and manufactured homes, while excluding personal property. The bill allows owners to exempt their homestead from attachment, execution, and forced sale during bankruptcy proceedings, with the exemption determined based on the date the bankruptcy petition is filed. However, this exemption does not apply to real property associated with community interest associations concerning unpaid assessments or charges.

Additionally, the bill amends existing law by removing the previous exemption for certain goods and personal property valued up to a specific amount and introduces a new bank account exemption. Under this provision, debtors can protect up to $3,500 in cash held in a deposit or joint account from execution, regardless of whether they file for bankruptcy. The bill outlines the process for obtaining court approval to reserve these funds and establishes notification requirements for creditors regarding the exempt amount. The changes aim to provide greater financial protection for individuals facing debt while ensuring that certain obligations to community associations are still met.