Exemption Question

[justagirl]

Hi all! First off, let me say that this forum has been a big help to me as I decide whether to file bankruptcy and whether to hire an attorney. Many of my questions have been answered in previous posts.

I am contemplating filing chapter 7. I pass the means test by a significant margin and have very little assets. I do not own my home, I rent, no car, but I do have part ownership in a vacation cabin with my mother. It is not worth much - less than $5000 (yes, that's 5 thousand!). I did not pay for ownership (I was put on the deed when my grandparents signed it over to my mother several years ago), do not own any personal property within the cabin, have never paid the utilities there. Last year, I did pay the real estate taxes - that is my only contribution. As this is not my legal residence, can it still be protected under my exemptions?

My state allows the use of federal exemptions, which are greater than the state exemptions. If I understand correctly, since I don't own a home for the "homestead exemption", I can apply a certain amount of that exemption (I think half) to any property. Is my reasoning correct?

Thanks in advance for any insight you have regarding this manner!

JAG

[JoeBankrupt33]

This would not be a homestead. But, you do not own a home, so you get to use the unused homestead amount up to $10,125 plus the $925 wild card to cover any property.

I wish we had Federal exemptions in CO.

[justagirl]

Thank you

Thank you for taking the time to respond! I wanted to make sure my thought process was correct with the exemptions rule.

I feel lucky to be able to use federal exemptions. Most of my state exemptions are rather poor, to say the least.

Thanks again for your help!

JAG