Homestead Exemtion in CA???

[dp1969]

What exactly does "homestead exemption" mean? I need a detailed description.

I'm referring to the California systems.

[PaKettle]

Here: http://los-angeles-bankruptcy.net/ca...exemptions.htm

Note that there are 2 systems of exemptions in Calif., and you choose one or the other, you cannot mix and match between the two.

The beauty for many is, if you do not have a home, you can apply that $17k or whatever it is, towards ANYthing, as I understand it. (Also it seems to me I read that it has increased above this, but I'm not sure - check around or ask your attorney).

Ask your attorney specifically about this exemption, but this page above should give you an idea. Google "California bankruptcy exemptions" for more pages.

Also, at least in my CA district, my attorney said that the Trustee does not take tax returns.

[dp1969]

Well, we are surrendering our home so technically that's not a home to live in anymore, right??

[jktrading]

Here: http://los-angeles-bankruptcy.net/ca...exemptions.htm

Note that there are 2 systems of exemptions in Calif., and you choose one or the other, you cannot mix and match between the two.

The beauty for many is, if you do not have a home, you can apply that $17k or whatever it is, towards ANYthing, as I understand it. (Also it seems to me I read that it has increased above this, but I'm not sure - check around or ask your attorney).

Ask your attorney specifically about this exemption, but this page above should give you an idea. Google "California bankruptcy exemptions" for more pages.

Also, at least in my CA district, my attorney said that the Trustee does not take tax returns.

It's been updated to $20,725 as of Apr 1, 2007. There's also a wildcard of $1,100, making it $21,825 for any property. Not too shaby here in CA if you ask me.

http://www.bankruptcyaction.com/caexemptions.htm

[dp1969]

We have a car worth $20k (KKB) and a loan on it for $8900, is the value of the car then $11,100 (straight asset)? Is that what the Trustee looks at? Not to mention we are going to reaffirm it. Plus, we have an old p/u (maybe) worth $3000 and a damaged boat worth $7000 (we can't afford to fix it).

So, the total the lawyer is exempting is $21,100 in cars and the boat. We automatically get $3300 for one car, right? Does that come out of the $ 21,825 for any property or is that a separate exemption?

In any case, we are surrendering our home so no "homestead" there. All we have is the 2 cars & boat ($21,100), household goods, clothing, books ($2,550), checking acct ($200.00) and a 401k & profit sharing.

[PaKettle]

We have a car worth $20k (KKB) and a loan on it for $8900, is the value of the car then $11,100 (straight asset)? Is that what the Trustee looks at? Not to mention we are going to reaffirm it. Plus, we have an old p/u (maybe) worth $3000 and a damaged boat worth $7000 (we can't afford to fix it).

So, the total the lawyer is exempting is $21,100 in cars and the boat. We automatically get $3300 for one car, right? Does that come out of the $ 21,825 for any property or is that a separate exemption?

In any case, we are surrendering our home so no "homestead" there. All we have is the 2 cars & boat ($21,100), household goods, clothing, books ($2,550), checking acct ($200.00) and a 401k & profit sharing.

Sounds right to me, but this is something you should specifically ask your attorney just to be sure.

[susie111]

Hi pakettle,

Which CA district are you in? I'm in Northern CA (Oakland) and I'm worry about my tax rebate.

[monkatom]

Down here is San Diego I am exempting part of my tax return so I guess tHE trustee could take it. I am also getting a return of over 10K so that could be why. Before anyone mentions it yes I am changing my exemptions.

[susie111]

do you know when is the timeline to amend your exemptions?

[dp1969]

Hi pakettle,

Which CA district are you in? I'm in Northern CA (Oakland) and I'm worry about my tax rebate.

Susie,

I'm over here by Gilroy.

I, too, worry about my rebate. We didn't have it exempted on our filing. Like I've stated in my posts, my attorney didn't want to hear of any "possible" rebate. I think he was trying to not create an ethical dilemma. Although, we are very close to our exemption limit and have a boat (damaged) that we want to keep so if the trustee wants an of our refund (if we get any) then I'd rather him take that than the boat.

[dp1969]

Car Loan on PACER "parties"

Checking PACER, I noticed that our car loan is now listed under "parties". Is this normal? We are reaffirming the car loan (never missed any payments).

[PaKettle]

We have a car worth $20k (KKB) and a loan on it for $8900, is the value of the car then $11,100 (straight asset)? Is that what the Trustee looks at? Not to mention we are going to reaffirm it. Plus, we have an old p/u (maybe) worth $3000 and a damaged boat worth $7000 (we can't afford to fix it).

So, the total the lawyer is exempting is $21,100 in cars and the boat. We automatically get $3300 for one car, right? Does that come out of the $ 21,825 for any property or is that a separate exemption?

In any case, we are surrendering our home so no "homestead" there. All we have is the 2 cars & boat ($21,100), household goods, clothing, books ($2,550), checking acct ($200.00) and a 401k & profit sharing.

I am just GUESSING here - ask your attorney. But I think the way it works is that since you are surrendering the home, you can use the $20+k homestead exemption for anything that is not covered under other exemptions. So if you can exempt one car under another exemption then that would not count under the homestead exemption. I would think that you'd be better off not to exempt "household goods, clothing, books" because they aren't likely to take those, anyway, and instead exempt whatever amount you have leftover from the homestead exemption for your tax rebate and/or tax refund. Ask your attorney about this.

Or, if you are in California ask if your Trustee even CARES about your tax refund. Mine said I didn't have to worry but he didn't say exactly why. Not sure whether it's because it was exempted or if it's because the local Trustee "just doesn 't DO that". Ask your attorney about these specific issues so you can maximize your exemptions to keep tax refunds.

[susie111]

I have been stressing about this 2007 rebate because it is a huge one and with a new born it sure would be nice have it as emergency money. However, I'm going to file my tax and if the trustee wants it fine. But how about tax rebate for 2008? Can he take that too? ANyone know?

Thanks

[dp1969]

Pa...I was thinking the same thing.