Thank you for giving me the opportunity to assist you. I encourage you to ask me for clarification, if you are not clear with my Answer.
Are the parents on title to the property also or is her name now the only one on the title?
My wife is the only one on the title.
Thank you for the additional information.
Your original post:
My wife and I are going to file for chapter13. We make good money but owe to much. We are giving up our house in the process. We owe 130000 in cc debt, 18500 in state taxes, 339000 for the house but it's worth 230,000 or less (letting it go to foreclosure). We have already moved out and are renting a place. My lawyer is reviewing and getting our chapter 13 ready to file. My question is this: My wife was put on a title to a cabin that her parents owned but put her name on the title in 2003. It is worth about 260000. It has been in her family for 100 years. We plan to move into this home when her parents pass away. Can the trustee take this home from us if we don't live there?
Response: Unfortunately yes because your wife is the legal owner of the house. You can only claim homestead exemption on the house if she occupies the house. See MSA Sections 510.01 and 510.02:
510.01 HOMESTEAD DEFINED; EXEMPT; EXCEPTION.
The house owned and occupied by a debtor as the debtor's dwelling place, together with the land upon which it is situated to the amount of area and value hereinafter limited and defined, shall constitute the homestead of such debtor and the debtor's family, and be exempt from seizure or sale under legal process on account of any debt not lawfully charged thereon in writing, except such as are incurred for work or materials furnished in the construction, repair, or improvement of such homestead, or for services performed by laborers or servants and as is provided in section 550.175.
510.02 AREA AND VALUE; HOW LIMITED.
The homestead may include any quantity of land not exceeding 160 acres. The exemption per homestead, whether the exemption is claimed by one or more debtors, may not exceed $300,000 or, if the homestead is used primarily for agricultural purposes, $750,000, exclusive of the limitations set forth in section 510.05.
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