Bankruptcy Law Questions? Ask a Bankruptcy Lawyer Now.
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.
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