matilda
Pooh-Bah
Reged: 11/11/04
Posts: 2087
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Is anyone familiar with the new bankruptcy laws and home equity? Is there a maximum amount you can keep before they expect you to sell house and pay creditors? My sister's husband left her with house and all cc bills. They owe about $20K. When they file for divorce STBX will want his share of equity from the house. She can't afford mortgage, bills, and costs with kids.
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TGSM
Carpal \'Tunnel
Reged: 02/06/05
Posts: 5843
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Well as we are going through chapter 13, I can answer that....
704.730. (a) The amount of the homestead exemption is one of the
following:
(1) Fifty thousand dollars ($50,000) unless the judgment debtor or
spouse of the judgment debtor who resides in the homestead is a
person described in paragraph (2) or (3).
(2) Seventy-five thousand dollars ($75,000) if the judgment debtor
or spouse of the judgment debtor who resides in the homestead is at
the time of the attempted sale of the homestead a member of a family
unit, and there is at least one member of the family unit who owns no
interest in the homestead or whose only interest in the homestead is
a community property interest with the judgment debtor.
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Faith-a f*rm belief in something for which there is no proof...complete trust.~Merriam Webster
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TGSM
Carpal \'Tunnel
Reged: 02/06/05
Posts: 5843
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Here's a good link...
http://www.ca-bankruptcy-attorneys.com/bankruptcyexemptionlaw.html
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Faith-a f*rm belief in something for which there is no proof...complete trust.~Merriam Webster
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matilda
Pooh-Bah
Reged: 11/11/04
Posts: 2087
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Thanks so much for the link. She is having a hard time because she has equity, but couldn't quality or afford a equity loan. If she sold the house then rent would be as much or more than mortgage payment. Her only options so far is to get a room mate (s) or sell and move out of state and risk losing custody of the kids.
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TGSM
Carpal \'Tunnel
Reged: 02/06/05
Posts: 5843
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I wish her luck, been there done that and going through it still. 
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Faith-a f*rm belief in something for which there is no proof...complete trust.~Merriam Webster
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Miranda
Carpal \'Tunnel
Reged: 06/02/05
Posts: 20822
Loc: North of Mexico
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Is 20K in bills enough debt to even file for bankruptcy now?
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13.1...because I am only half crazy!
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matilda
Pooh-Bah
Reged: 11/11/04
Posts: 2087
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She only makes 27K a year and has 3 minor children. SS and CS would be about $1000 monthly. It's not enough $$ to make it in Southern California. If she moves out of the area she risks losing custody of one of the children.
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