Personal Bankruptcy Homestead Exemption

[bbcdon]

Here is my question: I live in California, and it looks like I will be filing Chaper 7. We have a primary residence which is worth much less than owed. However, my wife & her sister own a rental home. If my wife and I were to move to the rental, would the household exemption keep the trustee from selling here half interest, which is worth $70,000. Would we have to move before we file, or afterwards, or is there a minimum length of time that we would have to reside in the rental.

 

[army judge]

Here is my question: I live in California, and it looks like I will be filing Chaper 7. We have a primary residence which is worth much less than owed. However, my wife & her sister own a rental home. If my wife and I were to move to the rental, would the household exemption keep the trustee from selling here half interest, which is worth $70,000. Would we have to move before we file, or afterwards, or is there a minimum length of time that we would have to reside in the rental.

Those are complex, comp,icated questions. You need to discuss them with a BK attorney.
On general, what you're asking about, if you do, could be seen in a negative light by the BK Judge and the trustee.
It could be seen as fraud.
Even if you plan to do a pro se filing, you could meet with a couple BK attorneys and ask your questions. The initial meeting is normally offered at no cost or obligation.

Even if your wife were to decide today to gift her half of the rental property to her sister, that could be seen as an effort to conceal or defraud. There's a window before you file that doing those kinds of things can be taken negatively.

These links might help, I'm sure you've searched, too.

http://www.nolo.com/legal-encyclopedia/the-california-homestead-exemption.html

http://www.nolo.com/legal-encyclopedia/california-bankruptcy-exemptions-property-assets.html

http://www.californiabankruptcy.info/chapter7.html

 

[bbcdon]

Thank you for your info, army judge!