Legal Question in Business Law in California

property exemptions
I am a single parent with 2 dependents. Last year I earned 10k. This year I have earned about 25K. I need to file bankruptcy, but I don't want to loose my home. How does the California homestead exemption clause under Chapter 7 work? I'm not behind on my mortgage. I owe 60K on my mortgage and the property is now worth approx 170K. I'm about 40k in debt. I just recently returned to working after being off for 2 yrs [1yr without income, hence the debt], but will loose my job in approx. 3mos due to disability. I don't know what, if any income I will have. I can't refinance because my credit score is really bad. If I do get approved the interest rate will be too high and I won't be able to afford to pay the mortgage and will loose my house anyway. Should I file for Chapter 13 (even though I know I'm about to loose my job) or Chapter 7 (and possibly loose my house)? I've already paid some of the creditor, but others won't negotiate and are threatening me with leins.Thank-You

Asked on 6/10/04, 5:11 pm

2 Answers from Attorneys

Bryan Whipple Bryan R. R. Whipple, Attorney at Law

0 users found helpful

0 attorneys agreed

Re: property exemptions

First, I think you would get more replies and maybe better ones if you asked your question under a different heading, maybe "bankruptcy" or "real estate" instead of business.

It would be helpful to know your age and the ages and relationship to you of your dependents. Also, is your disability temporary, permanent, or life-threatening? Will you be able to generate any income in the future? These all affect your decision, I think.

The homestead laws may be of some help to you; how much depends upon the nature and priority of the debts.

I suggest having free initial conferences with at least two different bankruptcy attorneys to find one you like and one that can answer your questions in a way that is both authoritative and understandable.

Answered on 6/10/04, 5:49 pm

Mark as helpful