Legal Question in Bankruptcy in California

I am in California and about to lose my job. We will be under the means test to qualify for Chapter 7 Bankruptcy. The question I have is about rental property. We bought our house in a small town and after three years, moved out of our home and started renting a home closer to work which happens to be an hour away from the home we own.

Our mortgage is $1238 a month and we rent out our old home for $1050 a month. If we do Chapter 7 bankruptcy, can we protect our rental house since we don't own two homes? We really don't want to move back for a few months and then move back to where there are job opportunities.

If we were to claim we lived in our rental home, how would the bankruptcy court find out if we really didn't?


Asked on 2/26/14, 4:16 pm

2 Answers from Attorneys
Scott Jordan Jordan Law Office

Does the rental property have any equity in it?

If you claim something that is not true, is that not a lie? When you sign the petition, you certify under penalty of perjury that you are telling the truth. If you get caught, you will likely lose your bankruptcy discharge and possibly be prosecuted for perjury. Not worth it, in my opinion.

To avoid losing your rental property, I suggest you hire a reputable bankruptcy attorney in your area who can advise you on how best to protect your property.

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Answered on 2/26/14, 4:51 pm
Charles Andersen Charles Andersen, Atty

The homestead exemption applies to one residence that you live in. Other than that their is a wildcard exemption of about $22,000 that applies if you don't need to take the homestead exemption on your residence that could used on any property

http://www.superdebtbuster.com

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Answered on 2/26/14, 6:36 pm


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