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We want to file a Joint Personal Bankruptcy. Here in Texas we understand that there are Homestead exemption that allow a certain amount of equity on our home. Problem is that we have mover and are renting another home and attempting to sell. We have an estimated equity amount of 35K after applying the accessed value. Question is should we take a Wildcard exemption of 24k with the idea that the Trustee will view the situation of no funds to be realized for creditor after paying the 1)Mortgage, 2)Ourselves at 24K, and a 3)Realtor Commission in that order? Is the order of payment correct considering no other cash? We only want to realize the equity in our home. Do consider that 99% of our debt was business related, lost the business, some was secured and was reposed and some has been liquated.
We have lost a business in 2010 and did not know the amount that the bank would be seeking as a shortage on our loan. The accountant postponed the business loss until this year. We have now been notified of the shortage via Law Suit. We will have to file
a Joint Personal Bankrupted. Can we take the loss of the business as a tax deduction this year as we know the amount, but are filing? Take the loss next year?
So, if the Trustee takes the property during a Bankruptsey the mortgage is paid first the Realtor second and then we would receive out 23950.00 exemption? If the are funds as that may short sale the property. Then the Creditors FOURTH?
We are actuall sepearted due to the stress on the proceding, if we make it official / Divorce than I would slao need a place to stay and the rental property would be for the X.
Then I could claim the Texas exemption of what 36,000.00 and the Trustee would probably determine that there is not enought equite to justify the actions.
OR to be spitful sell and pay the Mortuage and Realator, is that possible.?
Thank you for accepting my answer!If you are separated - living in separate households - you are supposed to file separately, not jointly.If you are living in a home that you own, you are entitled to the homestead exemption - which is the entire amount of the equity, as long as the home is on less than 10 acres in a city or 100-200 acres outside a city.
This means the trustee cannot sell your home.
In Texas the homestead is protected regardless of the value (if no less than 10 acres...).
So in order to keep the our Homestead in Texas, no matter the value, one of us would have to be living there, Correct?
We have a lease on another home, so would a legal seperation meet legals or would a divorcy be necessary? This to serve notice that we would be 2 differnet persons.
Yes - if you are paying the mortgage, you can keep your home if one of you is living in it, not matter how much equity it has (if on less than 10 acres...).
To file separately, you just have to declare that you are maintaining separate households. There is no proof required, and a divorce is not necessary.