Results 1 to 4 of 4
  1. #1
    Join Date
    Jul 2014
    Posts
    4

    Default California Homestead Exemption in Chapter 7 Bankruptcy

    My question involves bankruptcy in the state of: California. Here is my situation: I will be filing Chapter 7 in a few weeks. My wife and I now preside in a home which is upside down concerning value to amount owed.
    Due to an ongoing battle with cancer for the last 2 years, I was financially wiped out. My wife and her sister received a home which is now a rental when their mother passed away. It was in a trust, and has still not transferred to their names. If my wife & I move into the rental and file a Homestead Exemption before we file, will my wife's equity be protected, which is approximately $70,000? Is there a time frame for residency to be eligible for the Exemption? Thanks, Don.

  2. #2
    Join Date
    Sep 2010
    Posts
    478

    Default Re: California Homestead Exemption in Chapter 7 Bankruptcy

    Don,

    Welcome to the forum.

    As has been mentioned in almost every other forum you have posted to. . .

    You and your wife need to speak to competent legal counsel.

    You have now added to the tidbits of info you are posting that the property is in a trust that is fully vested but not distributed. It is questionable that you and your wife can claim a homestead on property that is not currently titled to your wife, even if you and your wife were to move into the property today.

    Please find an attny tomorrow instead of trying to find your answers on the Internet. Make sure you bring a copy of that trust with you AND make sure you disclose all facts surrounding the property - including the rental income and where that money is/was going and for how long.

    Des.

  3. #3
    Join Date
    Jul 2014
    Posts
    4

    Default Re: California Homestead Exemption in Chapter 7 Bankruptcy

    I have retained counsel. I have a meeting next week. I am just doing research. I do know that California has a Homestead Exemption of $75,000, and my wife's equity is approximately $70,000. I will not be able to return to work due to my cancer and other factors. I will not be able to keep up the payments on our home. The payments on the rental is much lower, and it is an option which we will have to take. I will probably lose our cars also which have been paid for many years ago. I am not trying to hide anything as a member on the other forum suggested! We are just trying to maintain the basics of life, and be able to survive financially.

  4. #4
    Join Date
    Sep 2011
    Location
    OH10
    Posts
    17,019

    Default Re: California Homestead Exemption in Chapter 7 Bankruptcy

    Once you strategically dump your current residence and move into an owned property, your bill matrix completely changes since you no longer have a house and maintenance payments. The court will want to know why that money cannot be used to pay creditors. That is the problem with strategic defaults, they can bite you back.

    1. Sponsored Links
       

Similar Threads

  1. Collection Lawsuits: Credit Card Debt and Homestead Exemption
    By spencer00si in forum Debts and Collections
    Replies: 5
    Last Post: 06-28-2009, 09:04 AM
  2. Collection Lawsuits: Does Oklahoma Homestead Exemption Prevent Unsecured Lien
    By Janie Bug in forum Debts and Collections
    Replies: 2
    Last Post: 03-25-2009, 09:09 AM
  3. Bankruptcy Issues: Homestead Exemption Waiver
    By threemonkeys79 in forum Bankruptcy Law
    Replies: 3
    Last Post: 12-31-2007, 11:12 AM
  4. Florida Homestead Exemption
    By helmettt in forum Buying, Selling and Conveying Real Estate
    Replies: 3
    Last Post: 01-04-2006, 06:12 PM
  5. Replies: 4
    Last Post: 01-15-2005, 07:54 AM
 
 
Sponsored Links

Legal Help, Information and Resources