Legal Question in Bankruptcy in California

I have several simple questions

I'd like to know if my home would be exempt under chapter 7. My name is on the deed along with my brother and his wife. I don't pay for any of the mortage payments because my brother took out a loan against the house to consolidate his credit card bills. So he pays for the mortage payments. Myself, my brother, his wife and adult son all live in this house. I pay for the water, garbage and a third of the property taxes and some groceries. I don't know how much he pays for the mortage or how much equity is in the property. How does this effect the exemption for my home.

What is the maximum I can have in a checking acct.?

Can I take the excess out and put it in a IRA or 401 so it will be exempt.

I own stocks, would they be exempt? If not can I put it in a IRA or 401? It was meant for my retirement any dividends are reinvested.

I have no income. I was on workers comp until June and returned to work so they stopped my payments, but I'm still under doctor's care. I ended up quitting because my job was making my condition worse. I can't receive unemployment, I quit. My doctor has my work status as totally disabled now because my blood test came back showing a high level of rheumatoid arthritis. He's trying to get an approval for a specialist. Workers comp is going to decide next month if I'm permanent and stationary. I assumed I can't apply for state disability until my case is closed with workers comp. If I receive a settlement from workers comp, which I doubt. But in case I do is it considered exempt?


Asked on 8/22/09, 8:49 pm

1 Answer from Attorneys
Larry L. Doan Law Office of Larry L. Doan

My answer is only for the homestead and the checking account. If you're on the deed then you're a part owner in the property. And if you live there, because the persons who live with you are all adults and only your brother and wife and nephew, you're entitled to $50,000 in homestead exemption. If you're over 65 or 55 and over with $15,000 per year income only, then you're entitled to $150,000 homestead exemption. But all this assumes there is sufficient equity of at least those amounts in the house. If not, then it's moot in the Chapter 7.

As far as a checking account, there's no exempt amount unless it's an account where you get direct-deposited social security ($2,700 exemption) or public benefits ($1,350 exemption).

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Answered on 8/24/09, 1:22 am


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