Legal Question in Bankruptcy in California

Re: Homestead exemption

If you're talking about bankruptcy, federal law does not yet recognize California's domestic partnership. If you're talking about homestead exemption to put your property beyond the reach of creditors in California, the answer is "yes", you can use the exemption application. The Family Code now defines the term "spouse" in the law as including "domestic partner" except for state taxes.

Re: Homestead exemption

I read the response from Mr. Cohen and would respectfull disagree with him. For California NON-BANKRUPTCY purposes I think he may be right though the newness of the domestic partnership act means that many of the issues as to what it effects will take years to resolve.

Federal Bankruptcy Law very definately does NOT recognize domestic partnerships. For instance you and your domestic partner CANNOT file a joint bankruptcy as you are not married under federal law. In fact you both would have to file separate bankruptcy cases.

Having said all that, you are in better shape simply because you are not "married" spouses. As such you each can SEPARATELY protect equity in a home.

A husband and wife can typically only exempt $75,000 in equity while you and your domestic partner can each exempt $50,000 for a total of $100,000 in equity. You are together $25,000 better off than a married husband and wife who are prohibited from each using exemptions separately.

There are other situations where the exemption for the homestead may be as high as $150,000 each.

I would highly recommend that you call my office at 1-800-675-1005 to set a free attorney consultation with me so we can discuss your situation further. I would recommend doing it quickly given the changes Congress is making in the laws that will dramatically limit people's ability to do bankruptcy.

For the record, I have been doing bankruptcy law for 27 years and am one of only 93 state bar certified specialists in the state of California. You can learn about me, my firm and a lot about bankruptcy law by going to my web site at www.ca-bankruptcy-attorneys.com. I invite you to go there as many of your questions will be answered in plain English there.

By the way, I give discounts where I am filing 2 related cases at the same time. I have handled life partner bankruptcy matters for years in the Gay and Lesbian community and have seen a recent upsurge in cases of late.

I look forward to the opportunity to help you and your partner with your financial issues.