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cfortunato
cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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I reside in Ca. If I file a personal bankrupcy can I keep my

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I reside in Ca. If I file a personal bankrupcy can I keep my home ,my retirement money. I am current on all debt payments but worried about the future. I do not want to file but want to know what I will lose. All debt is signed for personally. I have a business .The debt is about apprx. $300,000.00. All debt is signed for by me. No Corp. If the economy gets better I will be OK,but if worse I could get in trouble.
Submitted: 6 years ago.
Category: Bankruptcy Law
Expert:  cfortunato replied 6 years ago.

Hi JACustomer,

What is the current market value of your home?

What is the balance of the mortgage(s)?

What type of retirement plan do you have?

Customer: replied 6 years ago.
Value of home $483000.00 ,balance$ 241000.00, All the money is in annuties.
Customer: replied 6 years ago.
Value of home $483000.00 ,balance$ 241000.00, All the money is in annuties. My age is 71
Expert:  cfortunato replied 6 years ago.

Given the information you provided, you may not be able to keep your home if you file a Bankruptcy, because the applicable exemption is $175K. Since your home has more equity than that, the Bankruptcy trustee would be able to sell your home and give you $175K, unless you are able to pay the difference ($67K) with exempt assets.

The retirement funds would be exempt (could not be taken) if they are in "an account that is exempt from taxation under section 401, 403, 408 408A, 414, 457, or 501(a) of the Internal Revenue Code..." Bankruptcy Stat. 522(b)(3)(C).

 

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