Two Schedule C questions - Chapter 7

[HRoark0717]

This question refers to the California System 2 exemption chart: As an individual, if you are renting an apartment, does the asset, "Homestead" apply to renters?

If the "Homestead" asset amount does apply to renters, then I have another question.
In the exemption column for "Homestead", it says any unused portion of homestead may be applied to any property; Can I apply the unused homestead portion to cover my car? I am still paying on it (payments current) and would like to exempt it if possible.

One final question: If this scenario above can work, would I have to still reaffirm the debt remaining on the car even though its exempt under the California System 2??

Any feedback would be much appreciated. Thank you

[justbroke]

This question refers to the California System 2 exemption chart: As an individual, if you are renting an apartment, does the asset, "Homestead" apply to renters?

I generally don't like giving my opinion on which exemption scheme to use or which specific statute to use to exempt something, because you can actually lose property (and money) if you do it wrong.

That said, California System 2 is probably best for people that have no homestead (home).

If the "Homestead" asset amount does apply to renters, then I have another question.
In the exemption column for "Homestead", it says any unused portion of homestead may be applied to any property; Can I apply the unused homestead portion to cover my car? I am still paying on it (payments current) and would like to exempt it if possible.

Yes, in California, under System 2, the "unused" homestead exemption can be used for any property of the debtor. That means about $21K in exemption. We'll talk about the car in the next response.

One final question: If this scenario above can work, would I have to still reaffirm the debt remaining on the car even though its exempt under the California System 2??

You misunderstand what an exemption does and what a secured debt is. These are two different things. Since you have a consensual lien on the vehicle, you can't just keep the asset and say it's protected by an exemption. The exemption only protects the "equity" in the vehicle. Whether or not you need to reaffirm is really up to the lender. Since the BAPCPA was enacted, the old "ride though" option is no longer a real option. However, some automobile lenders don't care, so long as you are current and stay current.

[HRoark0717]

Excellent answer justbroke! I understand. Thank you!!