Where do I begin? ScheduleC Questions

[starting_over]

Summary:
1. Which box do I check on Form 6, Schedule C,
522(b)(2)
or
522(b)(3) ?

2. Am I putting the correct laws next to my entries on the forms?

3. Should my house go on schedule C even if I think I have no equity in it?
I may have between $2,000 and $5,000 paid off on the loan. However, I got a loan for $270K on a house for $265K to include closing costs, $0 down. Then the real estate market tanked and my house might be worth $230 now? Also ... how do I guesstimate if my house is worth $215K, $235K, or something in between? Anyway ... at the end of the day, if I tried to sell the house, I would get much less than what is owed on the loan.

I don't know where to begin. I'm in Reno, Nevada.
I'm going to be turning in papers / filing for BK the day after tomorrow on Monday. I have completed almost all the paperwork & am taking this wkend to finish.

On Form 6, ScheduleC Exempt Property ...
There are two check boxes at the top 522(b)(2) and 522(b)(3). I don't know which to check. I'm not clear which is for
- using bankruptcy code exemptions (federal law?) ?
- choosing to use state, local law etc.?

I did find something saying that Nevada is one of the states where you don't have a choice to choose state vs. federal ... you have to use state law for homestead exemption. And you must file your homestead before BK. Problem is ... I can't find anythign telling me which box I would check for which circumstance or what happens if I choose one box or the other.

I want to keep my car & home. I have paid off aproximately $5000 of the home in the last 3 years. It was originally a loan for $270 on a $265 priced house. (loan included closing costs, $0 down).

1. So, I think I have no equity in the home, but I think it's supposed to be on schedule C anyway. Does it hurt to put it there?

2. If I do put it there I think I'm supposed to list the law that allows me to keep it. In nevada you must have filed a homestead (which I did around a year ago). I think the law # I'm supposed to put there is:

ASSET EXEMPTION LAW PROVISION
Homestead Real property or mobile home to $125,000 (husband and wife may
not double)
Must record homestead declaration before filing for bankruptcy.
21.090(1) (m),
115.020

(I found this info here:

http://filing-bankruptcy-form.com/bankruptcy-exemptions.html

http://filing-bankruptcy-form.com/fo...ons/Nevada.pdf)


Sorry for the length of this post. I'm a bit overwhelmed and this is just ONE question from one form!

Thanks in advance,

Starting_Over

[JRScott]

If you have to use NV's homestead exemption then you would check the box to use the exemptions from state, local law. (The second one I think).

You would need to list the car and home loans in the appropriate schedule. You would then need to tell the court if you plan to reaffirm or surrender, it seems you want to reaffirm.

Depending on housing market in your area you probably have little to no equity.

With real property to protect it might be worth having Legal Aide or another such group look over your paperwork before you submit it to make sure you have not made any errors. I have no idea if you've listed the correct law on the schedules.

[starting_over]

Thanks for your reply. My dielema is exactly that. I can't easily figure out if 522(b)(2) or 522(b)(3) is the one that indiactes you are going by state/local law instead of federal law/bankrupcty code.

Anyone else have any idea?

Also, if I own my car outright & it's worth aproximately $3,000 - $4,000 I should still list that on the sheet b'c it's exempt and I want to keep it, correct?

[starting_over]

Someone else answered my question and it's in the NOLO book too. The top box is indeed for Federal, the second box is for State.
So ....
522(b)(2) = Federal Exemptions
522(b)(3) = State Exemptions

in NV we have to use the State ones.

I thought I'd update this post in case anyone else reading this in Nevada had the same question.