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Sorry it took me so long to get back to you. I'm a minister's wife and I've
been in church most of today, etc. Sent an email to my son which he returned
with following info:
1. price of newly constructed home, settlement 9/21/07: $419,000 (appraised at 427K in July 2008).
2. $336,000 1st mortgage in both names
(1st mortgage in both names as her credit was so poor he could not have
taken out 2nd mortgage.
3. $32,000 2nd mortgage in his name
4. Approx equity in home: $51K - $59K
Thank you for considering my question.
Divorice filing: 6/24/08
Custody agreement signed by both parties: 10/14/08
Child support 'hearing' 10/15/08 mediator waiting for letter notifying
of her structured settlement payments every three years; the next
check arrives 9/1/09 - $90,000. Tax free. And each check in successive
three year increments will increase by $39,000, so in 2011, the amount
will increase to $129,000, 2015 - $170,000, until 2021.
Thank you for your question. I am happy to assist you.
In Pennsylvania, a debtor can choose either the federal or the PA exemptions. PA does not provide a homestead exemption. However the federal exemptions provide a $17,450 homestead exemption per person. The exemption is calculated on the amount that the value of the home exceeds the mortgage. In your son's situation, his wife's interest appears to be half of 51 - 59 K or approximately 28,000.
For purposes of discussion, we can assume that she choose the federal exemptions. This would mean that she is over her homestead exemption by approximately $10,550. This is the amount that the trustee could claim in the bankruptcy. He could not force a sale of the home but could put a lien on it.
I hope that the information which I provided was helpful to you.
Best wishes for a successful outcome. If you have additional questions, please do not hesitate to submit them to me directly.
Thank you, FLAandNYLAWYER
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Who is the "trustee" you mention in the second paragraph of your previous note?
Thank you SO much for this info. You have no idea how much peace it gives us...for now. It's not over yet, so - I'm sure I'll be contacting you in future. Thanks again.
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