I feel dumb asking this, but...

[lotsahats]

what is a homestead exemption? Is it only for homeowners (because I don't own a home)?

Can somebody explain it like I'm a six-year-old?

I'm not that well versed in bankruptcy law (which is why won't be filing pro se).

The reason I ask is, whenever I research exemptions in my state, I keep finding two different things regarding a "wild card" exemption. Some sites say it's $4,000.00, while others say it's $10,000.00. Someone suggested that the higher number might be when a homestead exemption is included (huh? ).

Thanks.

[buzzstpoint]

I could be wrong... So you may want to wait till other chime in.

The way I understand Homestead exemtion is for "Real property" which is home you own, land you own. Then you can use it for personal property.

But this may also be dependent on the state you are filing in.

[LadyInTheRed]

The homestead exemption covers your equity in real property you own. In some states, if you don't need to use all of the homestead exemption, you can use the balance or a certain limited amount as a "wild card" for any property.

In my experience, the site that tends to be the most up to date on exemptions is http://www.legalconsumer.com/bankruptcy/laws/ If you click on your state, it will show you the state law that provides each exemption. Look up your particular state law to confirm the amount of the exemption. If you tell us what state you are in, we may be able to help sort out the exemptions available to you.

[AngelinaCatHub]

Florida and Texas as well as other states have what is known as a Homestead exemption. What this means is, for tax purposes we in Florida exempt 50 K on the ad-valorum taxes and also you cannot lose your home in a bankruptcy or a law suit. It is not takeable in law except for not paying the mortgage. It can be leaned but until sold the lien cannot be taken by law. It must be the house that you reside in and not a second house. You must (in FL) sign up once and you have to live in it for I believe six months before you can apply. There is a time limit per year to apply. Hope this helps. 'Hub

[lotsahats]

If you tell us what state you are in, we may be able to help sort out the exemptions available to you.

I'm in Tennessee, which is not a community property state.

The only property I'm concerned about is a $3,500.00 car, jointly owned by me AND my husband (AND, as opposed to OR), and our joint tax refund. I'm trying to figure out, since I'm filing bankruptcy without my husband, if I would have to exempt all of it, or only half the value of each. I've Googled it to death, but haven't really found a definitive answer.

[buzzstpoint]

From what I have seen, you should be able to claim your car and property up to 10,000 dollars as of 2010 using the personal property exemtions.

Edit...

Per TN Code...

26-2-103. Personal property selectively exempt from seizure.

Personal property to the aggregate value of ten thousand dollars ($10,000) debtor's equity interest shall be exempt from execution, seizure or attachment in the hands or possession of any person who is a bona fide citizen permanently residing in Tennessee, and such person shall be entitled to this exemption without regard to the debtor's vocation or pursuit or to the ownership of the debtor's abode. Such person may select for exemption the items of the owned and possessed personal property, including money and funds on deposit with a bank or other financial institution, up to the aggregate value of ten thousand dollars ($10,000) debtor's equity interest.

HISTORY: Acts 1978, ch. 915, § 3; 1980, ch. 919, § 2; T.C.A., § 26-202, T.C.A., § 26-2-102; Acts 2010, ch. 787, § 1.

[LadyInTheRed]

You only need to exempt your interest in the car. You can use the rest of the $10,000 wildcard for your tax refund and any other property that doesn't fall under other exemptions. In Tennessee, the wildcard exemption is not related to the homestead exemption.

[lotsahats]

Thanks, Buzz and Lady.

So, I shouldn't have anything to worry about, because everything I own doesn't come close to $10K, even taking into account the car and the refund.

I've been especially concerned about the tax refund (as you might read in some of my previous posts), because I was going to use it to pay for the bk attorney. I did read in this sticky, where it talks about turning non-exempt assets into exempt assets, but I wanted to double check. I don't want to spend it, only to find out the trustee wants it.