Someone..anyone..please help!!!

[struggling09]

I have attempted for over a week now to have this question answered by my attorney. Does anyone know in the state of Delaware if I can use the homestead exemption for a rental property. We have no equity in our 1st home (actually upside down). Or would the rental property fall under the personal property exemptions. The exemptions reads as follows:

Homestead: Residence consisting of real property or manufactured home: up to $50,000 for single person or married couple. 10-4914(c)


Personal Property Total person property exemptions: up to $25,000 for each debtor.

I'm praying that it falls under the homestead which will allow us to exempt more. Any advice is very much appreciated!!!!!

[fltoo]

Homestead is for owner occupied properties.

Have you thought about moving into the rental which has more equity and letting the first residence go?

[justbroke]

I have attempted for over a week now to have this question answered by my attorney. Does anyone know in the state of Delaware if I can use the homestead exemption for a rental property.

This is easy. Homstead is your primary resience and usually you need to declare it as your Homestead (although some States dont' require a homestead declaration).

As such, a rental property is not a homestead and does not qualify for any such exemption.

We have no equity in our 1st home (actually upside down). Or would the rental property fall under the personal property exemptions.

You may be able to exempt some of it under a general "personal property" exemption. (I don't understand where you came up with the $25K for the "personal property" exemption in Delaware, but let's just assume it's accurate for now. It's confusing, but I think it does exist for use against real property and that you may double it, if married and filing together. However, it includes all your property such as furnishing, clothing, etc.)

Even then, since you're in a Chapter 13, you'd have to dedicate at least as much of that property that is not subject to the personal property exemption.

For example, say your rental property is worth $200K and you owe $100K. You may be able to, under Delaware exemptions, use the $25K personal property exemption to cover $25K of that. However, that leaves $75K exposed.

The only way you can keep that rental property, is if you pay unsecured creditors at least $75K through your plan. That's right... you will need a plan payment of at least $1,250.00 over sixty (60) months, or $2,083.00 over thirty-six (36) months... minimum.

This will put you in what they call a 100% plan, more than likely. (Unless you have more than $75K worth of unsecured debt).

I want to also add that, other non-exempt personal property could make your minimumhttp://www.deb.uscourts.gov/Opinions...8_06-11426.pdf)