cal home with alot of equity

[cbomb]

newbie here to this site, i will begin reading all posts to avoid posting asked and answered.
My situation is I have accumulated 100k in legal fees as a result of a product liability law suit in which I was the plaintiff that suffered injury.
Defendants had lots of money and big legal team to convince jury that I had not suffered head trauma injury due to their defectective product.
I owe mine and defenses expenses of 100k unsecured.
Currently on disablity for mental problems, have 3 young children, which live with me full time, wife only lives with us every other week. In divorce proceedings, legally seperated since 99, prod liability lawsuit in 2000, our house is worth 850k I am on the note only for 160k, can they make me sell this house?
What should be my game plan, wife has always had bad credit, owes 40k in unsecured debt, mine is 730 score, 10k in credit card debt no car loans, 5k in cash from card in bank to hold me up. any links or suggestions would be helpful

[Allfund Mortgag]

I specialize in helping people facing or currently in Bankruptcy or foreclosure. I am a mortgage consultant for Allfund Mortgage and we have loan programs that help both situations. We are not a debt counseling service we actually help people. Email me at if you need my help. Dont lose the home you worked hard to get, get your home to work for you!

[SinkingFast]

That commercial plug was very inappropriate!

[Allfund Mortgag]

I disagree

I think being able to help someone is not a commercial plug. I would want someone to help me.

[SinkingFast]

You wanna advertise, pay for it.

This a FREE forum for advise. Not solicitations.

[cbomb]

thanks for the the support, but let limit this to non pro's with consumer views,
The fact that I can not access the equity in my home is based on the fact that my ex wife must approve of the loan and I not an option. Since she has substance abuse problems she does not respond to rational logical approaches.
This is the childrens home and I am comitted to providing them with a stable enviroment. The scenerio I see is that I will liquidate the property only to have her blow..... up her nose, her 300k, force the custody issue, although it has been agreed to as joint, and end up with full resposibility of the kids, Will I be able to exclude the asset, under chapt 7, assuming I meet the parameters of the filing. no need for marital advice, just some scenerio options please at this time. Ideally I would like to discharge all debts including hers aquired during the marrige and deal with the division of property at a time that has established that her sober living has been years and not months.

[Allfund Mortgag]

Not a problem

Offer her like 5k to sign off title, and if she is on the mortgage. Once she is off than you are free to refinance. You would get the 5k from cash out on your equity.

Also yeah I guess maybe I am advertising. Put the only ones paying is the people who use debt consolidation services, or pay attorneys big money, when if they have a home they can refinance. Yes its hard but it can be done.

[SinkingFast]

If you file BK, you may not be able to protect all the equity in your home under the New Law. The new limit is $125K in equity.

(Sec. 322) States that a debtor may not exempt a homestead interest acquired during the 1215-day period preceding petition filing which exceeds in the aggregate $125,000 in value in specified real or personal property. Exempts from such limitation the principal residence of a family farmer.

http://thomas.loc.gov/cgi-bin/bdquer...109query.html|

Chat with a few attnys to see exactly what your options are. Consultations are free and you'll learn more with each one you talk to.

The thoughts you described may be the only way to go. I feel your pain about having to uproot your children. We've just gone thru it ourselves and moving is not easy for kids. But they do adjust, and life does move on. On the upside, you'll split the proceeds, you can pay off your debts, and you'll be free and clear to pursue your future with your children.

[cbomb]

i am a little confused about the 1200 day thing, We have owned the home for 15 years but I am responsible for the note. I have a disabled child and this is my primary residence. I am disabled, does that raise the exemption limit. Can i be forced to be sell it?, and hey is raisin children a abstract form of family farming, lol

[Graphic]

California's laws on homestead are sort of tricky. Not too bad though.

I would explain but I decided to google to find something that might help explain to you a little easier..

http://www.bankruptcyinformation.com/CA_exemp.htm

Under homestead would help you with your question. Looks like the Tenant in Common route would be the way to go.. I'd just move to Florida if I were you :P we have a great homestead exemption...ask OJ!

[SinkingFast]

California's laws on homestead are sort of tricky. Not too bad though.

I would explain but I decided to google to find something that might help explain to you a little easier..

http://www.bankruptcyinformation.com/CA_exemp.htm

Under homestead would help you with your question. Looks like the Tenant in Common route would be the way to go.. I'd just move to Florida if I were you :P we have a great homestead exemption...ask OJ!

Nobody has a great homestead exemption any more, Graphic. That's one of the changes in the New Law. At least for people who have recently moved to a new state and purchased a home there.

It looks like the Law reads within the first 1215 days or 3.33 years you own a home, you are limited to $125000 max by Federal Law in Homestead exemption regardless of what your state allows. Unless there is some other clause, and I have read it correcty, and you've owned the home longer than that, you could be entitled to CA's regular pre 10/17 homestead exemption. That's the equity in your home. Not the total market value.

The law was written to prevent rich folk from fleeing to Debtor friendly states like Florida and Texas, sinking all their assets into property that cannot be touched due to unlimited homestead exemptions, and then filing BK. Evidently, that's what O.J. Simpson did after the trial. Moved to Florida, bought a multi-million dollar estate to protect his assets, and filed BK. Other stars and people of celebrity have done similar things in other debtor friendly states.

Your homestead exemption may be in the clear. You really need to discuss this with attnys.

[Graphic]

I haven't really researched the amount of days to have owned the state. Or if that is a law that has to be used or only if you use federal exemptions. (I don't own a house so not on my priority list)

As to OJ.. I don't recall him filing bk, he could have.. but most of his assets are exempt because of the fact he lives off his nice NFL pension, which is exempt anyways, then the homestead (i'm pretty sure he had the house already for a while .. was exempt) Like I said not sure on how the law works here. I was only kidding anyways lol I don't think many people would move from cali to florida just for that but who knows.

[SinkingFast]

O.J. was an example cited to us by an attny as to why the law changed. To prevent state hoppers that will go where they can get the best deal and have their assets covered.

We are regular folk who try to live the right way and work hard to pay our bills. Those types of people, especially rich folk and celebrities, have attnys and accountants at their disposal to advise them what's the best course of action to take.

If we'd had an attny advising us, we wouldn't have done the last refi. Prolly wouldn't have even taken out the 1st second mortgage that led to the refi. We woulda just filed BK then, discharged all the debt from the house, the CC's, and still had our 401K/IRA savings. Live and learn. Or, if we'd been smart enought, we coulda paid people who learn to live by selling advice and information to guide us on what to do.

[Graphic]

Yeah so now I did read he did file that ( didn't realize it.. dont pay attention to him lol) He had a good estate planner I will give him that though. oh well what can ya do \=

[Jenny]

Oh my gosh! You're on disability with a head injury, and your wife has a substance abuse problem? Forget the bankruptcy and the house. What's best for your kids?