Two Schedule C Questions

[HRoark0717]

This question refers to the California System 2 exemption chart: As an individual, if you are renting an apartment, does the asset, "Homestead" apply to renters?

If the "Homestead" asset amount does apply to renters, then I have another question.
In the exemption column for "Homestead", it says any unused portion of homestead may be applied to any property; Can I apply the unused homestead portion to cover my car? I am still paying on it (payments current) and would like to exempt it if possible.

One final question: If this scenario above can work, would I have to still reaffirm the debt remaining on the car even though its exempt under the California System 2??

Any feedback would be much appreciated. Thank you

[tcreegan]

Hi again HRoark,

...hope you aren't getting sick of me yet....

CA system 2 was made for single guys with a lot of expensive toys who rent.....

Rent = use the homestead exemption amount to exempt other stuff. (actually I think it is $925 + homestead)
Single = can't double exemptions in CA 2 (married joint filers can double in CA 1)

...also think the 703.140 (b)(3) exemption for household stuff is unlimited as long as any one thing isn't over $450

On the car, you already get $2,775 of exemption, you exempt the rest w. the unused homestead. (remember you just need to cover the equity, not the full value) The exemption and reaffirmation don't connect, you can do one or the other or both or none...

Since a reaffirmation makes you legally liable for the debt after the BK, it is best to avoid it. Most lenders are OK w/ not reaffirming as long as you stay current on the payments. Check w/ your lender.

Tom in Colo

[HRoark0717]

Hey Tom, With all your excellent help and input, there's no getting sick of you anytime soon... Once again, your explanations makes sense.

Since a reaffirmation makes you legally liable for the debt after the BK, it is best to avoid it. Most lenders are OK w/ not reaffirming as long as you stay current on the payments. Check w/ your lender.

I do have a couple of question about your quote above.

1. How do lenders react when someone calls them to say they are going to file BK?
2. I have been reading everywhere that it's mandatory to reaffirm a debt. How can someone go without it and feel they can keep their car?
3. How does one stay current on their payments once you file BK? I keep reading you cannot pay on any debts during the BK process.

Any feedback is much appreciated.