CA Exemptions question.

[BrokeIn2011]

Per the advice of member ValleYum, I am hoping that member Lady In The Red, can give me some basic info in regards to doing a Homestead in California, if I am 48 years old and single, in regards to trying to save my home if I file for BK.

Here is the thread (via link below) that prompted this question, via the advise of member ValleYum.

"200k in home equity may be an issue...

There are 2 CA exemption sets - Lady In The Red is the guru for this.

OP: Maybe start a fresh thread and put CA Exemptions in title so as to catch her attention??"

http://www.bkforum.com/showthread.php?74030-How-long-can-a-lawyer-drag-out-a-bankruptcy-hearing

[LadyInTheRed]

Yep, that title got my attention.

Read my blog and the links it contains regarding the 2 systems of bankruptcy exemptions in California. http://www.bkforum.com/entry.php?336...tcy-Exemptions

Since you have equity in your home, you'll probably want to use system 1. Here's the system 1 homestead exemption:

Real or personal Property you occupy including a mobile home, boat, stock cooperative, community apartment, planned development or condo to $75,000.00 if single and not disabled; $100,000.00 for families if no other member has a homestead; $150,000 if age 65 or older, or physically or mentally disabled; $100,000 if 55 or older, single and earn under $15,000 or married and earn under $20,000 and creditors seek to force the sale of your home; sale proceeds exempt for 6 months after received (husband and wife may not double the amount and may file a homestead declaration.

I am about to run out and don't have time to read that entire other thread. After skimming it, it sounds like there is $200k in equity in your home, but there may be co-owners. Is $200k your share of the equity? If not, how much of that equity is yours? Are you married or single? Are you over 55? Over 65? Disabled? I'll check this thread later and will try to be of more help if you post more details in this thread.

[BrokeIn2011]

Thanks a MILLION Lady In The Red. I appreciate your help so very much.

In my case, looking at your posting, I do fall under the first part where it states:

“Real or personal Property you occupy including a mobile home, boat, stock cooperative, community apartment, planned development or condo to $75,000.00 if single and not disabled”

So it looks like I can claim 75K, because I am 49 years old, and single, not disabled. However the house is solely in my name, with 200K equity.

Take your time in replying back, since I do not get online as often as I would like, since I am often away looking for work and working odd jobs to try to make some of my ends meet, since my family is paying the mortgage and homeowners insurance on the house already. Yet they are trying to help me until I can get back on my feet, however as you know, the job market is very, very bad right now . . . and nobody is really hiring. So I feel if I keep trying, I will hopefully find a stable job in order to better deal with my financial crises without filing BK.

One other thing, my brother that is helping with the mortgage and homeowners insurance lives in the house with me, with bills coming to the house in his name, does that help with the Homestead?

[LadyInTheRed]

Your brother won't help with the homestead. Based on the definition of "family unit" at http://www.leginfo.ca.gov/cgi-bin/di...04.710-704.850, he would have to be unable to care for himself in order to increase the homestead exemption.

I did go back and read the other thread and I think HHM summed up your situation well:

We are seeing this more and more lately, asset rich, cash flow poor. Bankruptcy is not a good option for that class of individuals. Bankruptcy is for asset poor, cash flow poor, or asset poor, cash flow rich (standard chapter 13 with DMI), but the asset rich, cash flow poor are in the weakest position relative to creditors with the least options. Bottom line, all you can do is self-liquidate and settle with creditors.

Assuming you are correct about the value of your home, you have $125K in non-exempt equity. The trustee would sell your house if you filed a Chap 7, probably for less than you can get if you sell it yourself. You'd be better off selling it yourself. Good luck on the job search. That's the best hope for keeping the house.

[BrokeIn2011]

Thank you very much Lady In The Red. I sincerely appreciate you taking a good look at my situation, reading that long thread (LOL!!!), and I greatly appreciate your advice. Thank you so very much for your help.