mass homestead question

[bridie43]

So about 11 years ago my ex (then my husband) confessed to having credit cards in my name that I never knew about...to the tune of about $60k +. Needless to say we filed bankruptcy chap 7. At that time, I swear I remember that whatever was leftover from the homestead exemption could be used for other assets. Is that not the case anymore or do I just have it dead wrong?

I was looking at the Mass exemptions and specifically the car allowance is all of $700. I think my car has a blue book trade of about $8,000 (2005 Toyota Matrix) give or take a few. When we filed 11 years ago I was able to keep my car and my home. Do you think it was because the car had a loan on it? I own this car outright.

UGH I need to think of other things 'cause my mind is racing and I'm in a panic attack!

[bridie43]

whoops I answered my own question. The lawyer back then must have used the federal exemptions (we have the option to do that in Mass from what I've read) and they allow $20,200k for homestead (although not sure if that is in addition to my mass homestead that I filed or in replacement of..). Anyhoo my house is upside down (first time I've ever been happy about that!) so I have about -$15,000, which I think means, per the fed guidelines I can use the $10,125 to cover my car. PHEW!

Hey this stuff is fun! I wonder if I chose the wrong profession!

[falken]

Keep in mind you can not use Mass. and the federal excemptions, you will need to pick one or the other. Chances are you are going to want the federal ones.

But yes, you can use the unused homestead exemption to cover the car.

[Pizza]

I read that the car exemption applies to the equity in the car and not the total value of the car itself, so long as you keep making payments (if applicable). Check the federal exemption list, if need be from several sources to verify this. I'm pretty sure it works just like the homestead exemption, it's all about equity.

If you have an unused portion of your homestead exemption, you will probably want to use that to cover other assets that cannot normally be exempted. Your 4-year-old non-luxury vehicle should be safe under federal exemptions.

[bridie43]

I read that the car exemption applies to the equity in the car and not the total value of the car itself, so long as you keep making payments (if applicable). Check the federal exemption list, if need be from several sources to verify this. I'm pretty sure it works just like the homestead exemption, it's all about equity.

If you have an unused portion of your homestead exemption, you will probably want to use that to cover other assets that cannot normally be exempted. Your 4-year-old non-luxury vehicle should be safe under federal exemptions.

I don't have a loan on the car so it's 100% equity. I can't believe how low of an allowance they give for a car! And not for nuthin' but in Mass the exemption for cash includes $75/month for electric/oil/gas. I'd be very interested to see who pays a combined amount of $75/month on these items! Last winter alone it cost me $400/month just for heat!

[Pizza]

I don't have a loan on the car so it's 100% equity. I can't believe how low of an allowance they give for a car! And not for nuthin' but in Mass the exemption for cash includes $75/month for electric/oil/gas. I'd be very interested to see who pays a combined amount of $75/month on these items! Last winter alone it cost me $400/month just for heat!

$750 is very small for a vehicle. If you go with federal, it becomes $3,225. You can claim $10,125 of your unused homestead, so that's $6,900 left (after the car exemption) you can use to save other property and keep the car. Not bad.

[bridie43]

$750 is very small for a vehicle. If you go with federal, it becomes $3,225. You can claim $10,125 of your unused homestead, so that's $6,900 left (after the car exemption) you can use to save other property and keep the car. Not bad.

[Pizza]

Oh by the way, this may be helpful for someone in a similar situation:

"The following states DO ALLOW you to use the federal bankruptcy exemptions if you want: Arkansas, Connecticut, Washington, D.C., Hawaii, Massachusetts, Michigan, Minnesota, New Jersey, New Mexico, Pennsylvania, Rhode Island, South Carolina, Texas, Vermont, Washington, and Wisconsin.

The following states DO NOT ALLOW you to use the federal bankruptcy exemptions: Alaska, Arizona, California, Colorado, Delaware, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, South Dakota, Tennessee, Utah, Virginia, West Virginia, and Wyoming. If you do not use the federal exemptions (either by choice or requirement), you are also allowed to use the federal non-bankruptcy exemptions."

There are exactly 15 states that allow you to pick which way to go. Now I'm not so sure about that last sentence "If you do not ... you are also allowed to use the federal non-bankruptcy exemptions". Wonder what that means?

[falken]

One correction, Kentucky does now allow you to use federal exemptions.

Edit: That is actually your only choice. The old kentucky list is no longer available.

[eddiep]

Hey neighbor!
New Hampshire also allows the federal exemptions too. you must have an outdated list.

[Pizza]

Maybe so. Here's where I got that info:

http://www.bcsalliance.com/y_bankruptcy2.html

Sorry. I've been getting lots of conflicting info myself lately. Either the laws are changing constantly or there are too many websites that haven't updated in a long time.