How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Ellen Your Own Question
Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
Type Your Bankruptcy Law Question Here...
Ellen is online now
A new question is answered every 9 seconds


Resolved Question:

Already stated question at the beginning.

Submitted: 7 years ago.
Category: Bankruptcy Law
Expert:  Ellen replied 7 years ago.
Your question is not showing on my screen. Please restate it here.
Customer: replied 7 years ago.
Okay, we now live in Illinois but under the 720 days. My wife wants to file Chapter 7. We own a house together and New Mexico exemptions apply.
The scenario. What will the trustee do? Our house might sell for $340,000. Our loan amount is $252,000. My wife would get a $30,000
homestead exemption. The trustee would have to pay the 5% real estate sales fee plus some closing cost of say $21,000. Since I own half interest what is my 50% that can not be touched? Trying to find out if the house would be at risk if files. Thanks.
Expert:  Ellen replied 7 years ago.
Is the house in NM or IL?
Customer: replied 7 years ago.
Expert:  Ellen replied 7 years ago.

Here is the exemption for homestead as per NM statute:

42-10-9. Homestead exemption.

Each person shall have exempt a homestead in a dwelling house and land occupied by him or in a dwelling house occupied by him although the dwelling is on land owned by another, provided that the dwelling is owned, leased or being purchased by the person claiming the exemption. Such a person has a homestead of thirty thousand dollars ($30,000) exempt from attachment, execution or foreclosure by a judgment creditor and from any proceeding of receivers or trustees in insolvency proceedings and from executors or administrators in probate. If the homestead is owned jointly by two persons, each joint owner is entitled to an exemption of thirty thousand dollars ($30,000)

It appears that your house has equity of $67,000(340-252-21). Provided you own the house jointly with your wife, the value of each half interest is 33,500. Since the exemption is 30,000, your wife may need to pay into the court $3,500 to purchase the trustee's interest in the house.
Ellen and other Bankruptcy Law Specialists are ready to help you

Related Bankruptcy Law Questions