Hello and welcome. My name isXXXXX am a Licensed practicing attorney and my goal is to provide you with excellent service today.
California law provides some protection against complete loss of home equity against judgment creditors under certain circumstances. In understanding these protections,
The homestead exemption does not require the recording of any document. While the homestead exemption may prevent the forced sale of your home if there is insufficient equity, it may not do so if there is sufficient equity. Therefore, the homestead exemption is not necessarily protection for your house itself, but only for the equity that may exist in your house.
The declared homestead requires the recording of a homestead declaration. This is a document that must contain certain statements by law, including a statement that the declared homestead is the principal dwelling of the declared homestead owner. Other statements are required as well.
So I need to file a separate Homestead on my home? I did that on another home I used to own.
To be safe it is best to protect the property with a declared homestead
Is that correct?
Thank you. I wanted to ask another question is that ok?
file a homestead declaration to protect your homestead exemption from judicial liens and to protect the proceeds of a voluntary sale of your home for six months.
in terms of bankruptcy, the State exemption will save much of your equity but not the entire amount,
In California’s System 1, single homeowners who are not disabled may exempt up to $75,000 of the equity in their home or other property covered by the homestead exemption. You may exempt up to $100,000 if you live with a family member; $175,000 if you are 65 or older, or physically or mentally disabled; $175,000 if 55 or older, single, and earn a gross annual income under $15,000 or are married and earn a gross annual income under $20,000 and creditors seek to force the sale of your home. If you are married but separated, you may claim the homestead exemption in community property occupied by your spouse.
In California’s System 2, homeowners can exempt up to $24,060 of the equity in their home
If Iam married but separated I may claim the homestead exemption in community property occupied by your spouse. What does that mean?
That is the bankruptcy exemption,
He is not working and we are separated. Half those bills are in his name.
it allows you to still claim the bankruptcy exemption if separated.
Even in the house he occupies,
so if he lives in the home, you can use an exemption for that home
the $24,060 would not apply to you, as you would choose the 1st option
those are the bankruptcy exemptions,
in CA you have two options to save your equity in a bankruptcy
option 1 and option 2
Im not quite clear,but if I put my own homestead on the property will it protect the entire amount?
as a disabled person you would have a $125,000 exemption
Should I file a separate homestead?Also, some creditors want me to work with Consumer Credit Counselors. I am afraid to tell anyone I own my house. I have to pay $1268 for health insurance for my husband and myself. CCC doesn't consider insurance payments.
You do not need to, however I would file it
in terms of protecting your home,
If I am married the exemption is what?
Let me clarify the California Legislature recently passed Assembly Bill 1046 that, effective January 1, 2010, increases the homestead exemption for California homeowners from $50,000 to $75,000 for individuals, from $75,000 to $100,000 for married couples, and from $150,000 to $175,000 for seniors older than 65, the disabled or individuals older than 55 with limited income.
so it is $175,000
which means these creditors would not lien your property,
What you may want to consider is putting the deed of your home into a trust or another name,
and not pay any credit cards,
or bills, if the house is not in your name they cannot lien it,
or take it from you
I am trying not to file bankruptcy,but 3 credit cards may charge off at the end of this month.I am 58 and disabled, and my income from Teachers retirement is approximately &1860/mo.
You do not have to file bankruptcy your pension
is protected from creditors,
if your home is exempted, it will be protected a well,
and if you change the title of the home it would be protected as well
My husband is not working at the present.How can I exempt the home? The title is in my name only in my Trust
You can file the homestead declaration,
By filing the Homestead?
that saves $175,000
I would also consider changing the title to a trust or other entity such as a corporation,
so creditors of your husband and you cannot even put a lien on it
I can either drop my insurance or pay Freedom .
You should not pay them,
they will settle with you for 20-30% of the debt,
Freedom or the health insurance?
if you call each one,
you should pay for the insurance,
You should contact each creditor and settle with them
Right now B of A will settle for for $10,000 on $30,000 worth of debt. I don't have $10,000
Advise them you can only do a payment plan, or you will not pay or file bankruptcy, they may come down,
even if you do not pay,
you are pretty much collection proof,
they would be limited in what they get,
If I cant settle, they are going to charge off. I paid the $637 last month. I cant keep paying that.
let them charge off,
They wont put a lien against the house?
I haven't told them anything about owning the house.
they may, which will take some time, but they would not force a sale as you have a $175,000 exemption
also, you can take your name of the deed,
as I have stated,
you can change the deed to a LLC corporation,
then the creditors cannot touch it.
What is that?
It is a corporation,
I make up a business?
you create a simple corporation,
you would claim it is for your real esate,
What I would do now is the following:
1. File a homestead declaration
2. Do not pay any creditors, only health insurance
3. Speak to a local lawyer about taking the home out of your name
You would be fine, and protected
Thank you so much for your help.
I would not worry,
the $175,000 exemption protects the home,
I would suggest changing the deed as well.
Good luck, and if you have any further questions please do not hesitate to ask.
If satisfied please provide us with positive feedback,
Are u advising me to file bankruptcy? Or should I try to get $ for a settlement? I don't know how I will do that,but something might happen.
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).