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Terry L.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2830
Experience:  Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.
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How to protect another persons real property when held in

Resolved Question:

How to protect another person's real property when held in 2 family members names, if one of the members wants to file chapter 7 bankruptcy?
Submitted: 6 years ago.
Category: Bankruptcy Law
Expert:  Terry L. replied 6 years ago.
each person would have 1/2 interest in the equity, after factoring in the mortgage balance. In California, if a debtor in bankruptcy owns real estate, they can protect their share of equity:

Here is the choice of exemptions to use:

Principal residence:
$50,000 - Single Debtor §704.730(a)(1)
$75,000 Head of Household §704.730(a)(2)
$150,000 65 years or Disabled or 55 years with low income §704.730(a)(3) ** **11 USC Sec 522 (o) any use of non-exempt funds to increase exempt homestead equity is not exempt where done with intent to defraud creditors (10 year look-back)
11 USC Sec 522 (p) limits maximum homestead to $125,000 if acquired within 1215 days before filing

OR:

Real or personal property, including co-op, used as residence to $17,425; unused portion of homestead may be applied to any property

Talk with a local bankruptcy attorney to determine what exemption group is best, XXXXX XXXXX do an equity analysis to determine if the property will be protected.


Thanks for your question and good luck to you.

Customer: replied 6 years ago.
But the property is being held for their mother.......Their name is XXXXX XXXXX title because the mother is sick, but still belongs to mom. Can't it be exempt as not their property?
Expert:  Terry L. replied 6 years ago.
If the home is in their name, it is no longer mom's, and would have to treat it accordingly.
Thanks
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