Schedule c

[knattagh]

Hey guys I'm trying to do my own BK in SCHEDULE C do I claim my primary residence as exempt meaning I want to keep it? And what is the difference between the exemptions 11 U.S.C 522(b)(2) and (3)?

[tcreegan]

State or Federal exemption?

Hello knattagh,

The key question here is whether you can take the federal exemption or your state exemption. The federal exemption for real property is $15,000 Most states have their own exemptions with a higher value. Some states allow you to pick from the state or federal exemptions, some states (like Colo) require you to use the state exemptions.

11 U.S.C 522(b)(2) sends you down to subsection (d) which is the standard $15,000 federal exemption.

11 U.S.C 522(b)(3) applies (generally) if you are married and not filing jointly with your spouse. (and some other issues; mainly if your house funds are tied to your retirement. Also if you bought a 125K property within the last 1215 days, or you sold a chunk of your property to defraud a creditor)

If you are using your state exemption, do not check either box on Schedule C but put the state law (#subsectionetc where the exemption is listed) under the "Specify Law etc" column.

Hope this helps,

Tom in Colo