Legal Question in Bankruptcy in Nevada

Keep our home or destroy the family?

About $20,000 in credit card debt only on $832 month Social Security Disability income. I was added to my mother's house in California as a ''joint tenant''. Sold that house and bought a Nevada house, paid in full, no mortgage or liens. I estimate forced liquidation price approximately $160,000 on house (original purchase price $149,000 in 2001). Kept same vesting on purchase of Nevada house. It is homesteaded, noting vesting as ''mother and son as joint tenants.'' If I declare Chapter 7, will my equity be half of the house value and will the homestead offset that? Or will the entire value of the house be listed as my asset in which case I am several tens of thousands short for homestead protection. I'm in debt, scared, and worried. My health is declining and I have delayed medical care to pay my bills. My mother is 84 and desperately ill. Have I ruined our lives and lost our home for us?


Asked on 12/09/02, 1:31 am

1 Answer from Attorneys
Dorothy Bunce

Calculating equity in home co-owned with Mom

If you and Mom sold the house right now, you and she would split the money you received from escrow - right? (If Mom should die, you would own 100% of the house, but she's still ok, right!) So the value of your homestead is 1/2 of the value of the house, minus the expenses of sale - which should easily be covered by the $125,000 Nevada homestead exemption.

If any of your debts involve lawsuits that have become final judgments, your worries are not over. If you don't call me to file bankruptcy, call someone soon so that your rights are protected. Don't letter worry paralyze you!

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Answered on 12/09/02, 11:55 am


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