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    #1

    Confused

    I am having a hard time understanding the exemptions for my state. Forgive me if this is lengthy but I am trying to understand. I live in FL. My husband and I have one home that we live in. He is not filing with me as his only debt is one card and my car that I make payments on. Our home is valued at $210,000 but we owe $210,500 on two mortgages. Since there is no equity in the home why exactly do I have to use that exemption? I am going through and listing all my personal property and while we don't have alot of stuff I am coming up with more than $1,000 worth. Honestly we don't have anything huge or anything and nothing that I couldn't live without but I don't want to punish my husband and son for my mistakes. Why can't I use the $4,000 in personal property exemption since my home has no equity.

    I am so confused..................
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    #2
    If your numbers are accurate, you DO have equity in the homestead. The second mortgage will get stripped, leaving you with equity that needs to be exempted. Since you are in Florida, like us, you enjoy unlimited homestead exemption as long as you have been a resident for a few years and owned the property for that time.

    Let's assume:

    If your second is 40k, then you would have 40k equity once it is stripped. That is my understanding as to why you need to use the homestead exemption. How did you value the property? Most of our state has been decimated by the market crash. Our house was worth 700k at the peak (had an actual offer) and is now worth a little over 200k.

    In Florida, a home is assumed to be owned under Tenancy By The Entireties, as long as it is not specifically titled in another fashion, and you should look into this as an alternative protection effort for the home since you are filing alone. An attorney can tell you more about this.
    11-20-09-- Filed Chapter 7
    12-23-09-- 341 Meeting-Early Christmas Gift?
    3-9-10--Discharged

    Comment

      #3
      Thank you for the reply. So far nothing of what I have read states anything about the second mortgage being stripped. That's interesting. I've been using the NOLO book for guidance because I just cannot afford a lawyer.

      I valued the home based on what has sold in my area in the last month or so. Same size lot etc. My husband and I do own the property as joint tenancy as I specifically remember changing the deed to that when we got married. I have been here since 2000 at this house but have lived in Florida over 20 years.

      Guess it's time to do some more research - do you happen to know if we use the joint tenancy exemption that would entitle us to the $4,000 in personal property? I know you're not a lawyer and I will be doing some research on this but was just wondering.

      Again, thanks for the response.

      Comment

        #4
        Second mortgages are not stripped in a chapter 7. They are only stripped in a chapter 13.
        You can't take a picture of this. It's already gone. ~~Nate, Six Feet Under

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          #5
          Thanks backtoschool. When I did my research I realized that. I also realized I wasn't specific enough in my 1st question. So now the question still confuses me. If I have $0 exemption value on schedule C does that mean I qualify for the $4,000 exemption of personal property?

          Off to do more research.

          Comment

            #6
            My apologies for the misinformation, I didn't properly read the part about ch 7
            11-20-09-- Filed Chapter 7
            12-23-09-- 341 Meeting-Early Christmas Gift?
            3-9-10--Discharged

            Comment

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