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How can I protect my home, that I purchased this year, if I…

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How can I protect my...
How can I protect my home, that I purchased this year, if I have to declare bankruptcy?
Submitted: 4 months ago.Category: Bankruptcy Law
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3/7/2018
Bankruptcy Lawyer: Terry L., Attorney replied 4 months ago
Terry L.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2,961
Experience: Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.
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good afternoon. What is the home worth? Do you have a mortgage? if so, what is the balance?

You can use of the two California state bankruptcy exemptions to protect your assets. You cannot mix and match.

Exemptions can be viewed here: https://www.thebankruptcysite.org/exemptions/california.html

So, take the value of the home, subtract costs of sale (5-6% usually) then subtract the mortgage balances (if any). Finally, subtract the homestead exemption. If the resulting figure is below zero, then there is no equity for the chapter 7 bankruptcy trustee to liquidate. If it is above zero, the trustee could liquidate to pay the unexempted equity to your creditors. In that instance, a chapter 13 would probably be best. Talk to a local bankruptcy attorney to review your assets and help choose which set of exemptions fits you best, ***** ***** will determine the best chapter to file.

Let me know what questions you have. thanks! Terry.

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Customer reply replied 4 months ago
Thank you for your help Terry!I bought the home in Augest of 2017 for $605,000 plus closing costs. The loan amount is for roughly $400,000 and I just checked Zillow and the estimated value has gone up to $700,000.I owe roughly $50,000 in credit card debt. Some of it being personal credit cards and some from a business credit card. I'm a sole proprietor and all my accounts were made using my social. Sadly, the lady I was doing business with has stolen over $50,000 from me. With this, I haven't been able to work due to health issues. I was told that I should go on disability, but that's a process in of itself that takes time etc.This a brief cap on my situation and I don't know what to do. I want to protect myself and the home I have spent my whole life working to get. If you can, please give me any advice as to what I should do to move forward. I joined just answer because I don't have the finances to hire an attorney.Thank you again!
Bankruptcy Lawyer: Terry L., Attorney replied 4 months ago
This exemption offers the larger of the 2 protections. Homestead704.730 - Real or personal property occupied at time of filing for bankruptcy, including mobile home, boat, stock cooperative, community apartment, planned development or condominium, up to the following limits: $75,000 if single and not disabled; $100,000 if family and no other member has homestead; $175,000 if 65 or older or if physically or mentally disabled; $175,000 if creditors are seeking to force sale of your home and you are either (a) 55 or older, single and earn under $25,000 per year, or (b) 55 or older, married and earn under $35,000 per year. Sale proceeds are exempt for up to 6 months after the sale.So I would get an appraisal or comparable market analysis to get the true fair market value of the home. Online valuations can vary drastically. Subtract the mortgage, cost of sale and the above exemption (based on age & marital status as explained above)to determine if the home will be protected in a chapter 7. If not, then you can file chapter 13, whereby you would pay back a percentage of your debt to protect the equity. It is best to hire a local attorney though for precise advice on protecting your home.
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Bankruptcy Lawyer: Terry L., Attorney replied 4 months ago

good morning. I'm following up with you. If satisfied, please click accept and rate my answer so I may get credit for answering. thanks. If you have any further questions, let me know.

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Bankruptcy Lawyer: Terry L., Attorney replied 4 months ago

HI. Please click accept to close question and rate my answer if satisfied. If you have more questions, please let me know here and I'll be glad to answer. thanks. Terry

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