Legal Question in Bankruptcy in California

Can I keep my home

we are being sued for a car accident, the other party is asking for 1/2mil, if I lose, I wont be able to pay them at all, would they come after my property( now has 200k in equity excluding homestead).Should I just file for bankrupcy? Would this allow me to keep my home & car? I just bought a new car prior the accident too. What should I do next?


Asked on 6/22/06, 6:24 pm

3 Answers from Attorneys

Mark Markus Law Office of Mark J. Markus

Re: Can I keep my home

Your question can only be fully answered after a comprehensive consultation. If you wanted to keep your home you would likely have to do a Ch. 13 case because you have too much equity to protect in a Ch. 7. Depending on what exemptions you qualify for, you'd likely have to repay at least $100,000 over the course of your ch. 13 plan, but of course I'm just throwing very rough numbers out, not having all the necessary information.

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Answered on 6/22/06, 6:30 pm
Gloria Gong Law Office of G. Gong

Re: Can I keep my home

I am not sure which state you are in, but the new law allows only $125,000 max in equity in a home, and it may not be even that much depending on your state exemptions. Your auto insurance should be handling the matter for your defense. Usually the plaintiff will settle with the insurance and not go after the defendant for more than the insurance amount. If you do lose the lawsuit for more than your insurance policy limits, it may not be discharged if you were under the influence at the time of the accident. It would be wise to discuss this matter with both your defense attorney and a qualified bankruptcy attorney to obtain more specific information.

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Answered on 6/22/06, 7:42 pm
Robert F. Cohen Law Office of Robert F. Cohen

Re: Can I keep my home

Strategically, you should tender defense and indemnity to your insurance carrier. Send them by overnight mail a copy of the summons, complaint and other accompanying papers with a letter of tender. I agree with my colleagues that usually insurance companies will settle within policy limits. Saves you trouble of going through bankruptcy. If there is a trial and judgment in excess of policy limits, then, certainly, bankruptcy might be considered.

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Answered on 6/22/06, 8:24 pm


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