Under California Code
Civ. Proc. 704.820, only the debtor's interest in a joint tenancy property may be sold to satisfy a money judgment. The federal bankruptcy courts
have interpreted this to mean that the bankruptcy trustee
is subject to the same control. See In re Reed, 940 F. 2d 1317 (1991).
Consequently, if you are a joint tenant with your parents in a home in which they reside, then the most that could be sold to cover your debt would be 1/3 of $200,000 in equity, or $60,000.
So, if you were to move into your parents' home, and declare it as your principal residence, then you would be protected for at least $75,000 in equity -- which means that the bankruptcy trustee could not sell the home.
Even if you did not move in, the bankruptcy court will not permit an interest in a person's home to be sold if it would be impractical to do so -- and case law suggests that where the sale operates to oust a nondebtor from a principal residence, then that is impractical, and the court will refuse to sell the property. See Reed
, at 1332.
Consequently, I suggest that you may want to find a very competent bankruptcy attorney, and lay out all of your financial "cards on the table" -- because based upon what you have described, bankruptcy seems to be a very viable option for you.
Please let me know if my answer is helpful or if I can provide further clarification or assistance.
And, thanks for using justanswer.com!