Ok, you will have a problem if you file bankruptcy in California. Your horse is not fully exempt and you could lose the horse if you filed bankruptcy.

In Cali there are two sets of exemptions that you can use to protect your property.

System 1 - will not help you at all as there is nothing in this system that will protect any part of your horse.

System 2 - can help some what but won't fully protect your horse. This system allows for what is called a wild card that you can use to protect anything you want, such as your horse. The wild card amount is limited to the unused portion of your homestead exemption which is limited to $22,075. Therefore the MOST that you could protect would be $22,075 in value of your horse.

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Thanks,

HClegal

You cannot transfer an asset and then file bankruptcy. All transfer must be listed and disclosed in the Statement of Financial Affairs and so the trustee could go after your sponsor.

If you have something to prove that you are not the only owner of the horse then you would only have to worry about protecting your portion of the horse. For example...

If you own 50% of the horse and it is worth $50,000, then you would only need to worry about protecting $25,000.