How much equity does your home have? (Equity = current market value minus the balance on the mortgage.)
1) Since your home has no equity, you would not check the box that says you are exempting more than $146,450.
2) Since you do not have to use the homestead exemption (because your home has no equity), you can instead use up to $22,075 to exempt any other property or assets you have - if you use the System 2 exemptions.
I think this is what you wanted to know. If not, please let me know.Thank you.
If you owe $347K for your house, your house has no equity. Homesteading a house is only possible when the house has equity. (Equity = what the house can be sold for minus the balance on the mortgage.)
The Bankruptcy court will not determine that the mortgage company has no standing or does not have a legitimate mortgage. This is something you have to do in state court.
However, if you can determine in state court that your mortgage is not legitimate, and therefore should be voided, then you can apply the $150,000 exemption. But this is something that has to be done in state court first - it cannot be done in Bankruptcy court.
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).