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Chapter 7 California- will I lose my home?

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Sara Abrams

Active Member
I bought the house 7 years ago for $123,000. According to the online real estate sites it's worth around $240,000 now, but I have no idea how accurate those are. Ex-husband left me in massive debt after divorce- major identity theft, but none could be proven/ no one cared. Anyway, that is what it is. I've always stayed current on mortgage payments, no problem there. But I've barely made a dent- it's all been going to interest and what not. I still owe nearly full amount ($123,000). CA exemption is $100,000. I live here with my two sons, age 9. Do I risk losing the home if I file chapter 7?
I have no actual income at this time. Up until recently I was a preschool teacher making minimum wage, but I am currently trying to obtain my nursing degree. My dad pays my bills and keeps us afloat, but is on a fixed income so we are just getting by.
Bank levy was recently put on my account by a creditor. It was wiped clean.
Also, my ex-husband owes $22,000 in spousal support and child support. I have filed a motion for that, but am not expecting anything (ex is a drug addict and, while he makes a lot, it all goes to drugs and gambling). Even in the best case scenario, if I were to be granted all the money owed to me (again, won't happen, I know), will it just go to creditors?
Any advice is appreciated.
 
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Eekamouse

Senior Member
I bought the house 7 years ago for $123,000. According to the online real estate sites it's worth around $240,000 now, but I have no idea how accurate those are. Ex-husband left me in massive debt after divorce- major identity theft, but none could be proven/ no one cared. Anyway, that is what it is. I've always stayed current on mortgage payments, no problem there. But I've barely made a dent- it's all been going to interest and what not. I still owe nearly full amount ($123,000). CA exemption is $100,000. I live here with my two sons, age 9. Do I risk losing the home if I file chapter 7?
I have no actual income at this time. Up until recently I was a preschool teacher making minimum wage, but I am currently trying to obtain my nursing degree. My dad pays my bills and keeps us afloat, but is on a fixed income so we are just getting by.
Bank levy was recently put on my account by a creditor. It was wiped clean.
Also, my ex-husband owes $22,000 in spousal support and child support. I have filed a motion for that, but am not expecting anything (ex is a drug addict and, while he makes a lot, it all goes to drugs and gambling). Even in the best case scenario, if I were to be granted all the money owed to me (again, won't happen, I know), will it just go to creditors?
Any advice is appreciated.
Hmmm...I think most everyone here are just too sads to be able to help you. :cry:
 

quincy

Senior Member
I bought the house 7 years ago for $123,000. According to the online real estate sites it's worth around $240,000 now, but I have no idea how accurate those are. Ex-husband left me in massive debt after divorce- major identity theft, but none could be proven/ no one cared. Anyway, that is what it is. I've always stayed current on mortgage payments, no problem there. But I've barely made a dent- it's all been going to interest and what not. I still owe nearly full amount ($123,000). CA exemption is $100,000. I live here with my two sons, age 9. Do I risk losing the home if I file chapter 7?
I have no actual income at this time. Up until recently I was a preschool teacher making minimum wage, but I am currently trying to obtain my nursing degree. My dad pays my bills and keeps us afloat, but is on a fixed income so we are just getting by.
Bank levy was recently put on my account by a creditor. It was wiped clean.
Also, my ex-husband owes $22,000 in spousal support and child support. I have filed a motion for that, but am not expecting anything (ex is a drug addict and, while he makes a lot, it all goes to drugs and gambling). Even in the best case scenario, if I were to be granted all the money owed to me (again, won't happen, I know), will it just go to creditors?
Any advice is appreciated.
Have you considered selling the house?
 

Sara Abrams

Active Member
Have you considered selling the house?
Right now my mortgage is $820, which is dirt cheap for California. If I have to move, my only chance would be out of state, and then I'd be far away from family. Very difficult for a single mother. But I take it the answer is, yes, my house can be taken? And if that is the case, then I would get $100,000 (amount of exemption) and the rest would be given to creditors? Am I interpreting this correctly?
Thanks for your responses so far.
 

quincy

Senior Member
Right now my mortgage is $820, which is dirt cheap for California. If I have to move, my only chance would be out of state, and then I'd be far away from family. Very difficult for a single mother. But I take it the answer is, yes, my house can be taken? And if that is the case, then I would get $100,000 (amount of exemption) and the rest would be given to creditors? Am I interpreting this correctly?
Thanks for your responses so far.
Exemptions apply to the equity in an asset. I don't know if you would be at risk of losing your house or other assets or not if you file for bankruptcy.

I think you would benefit from sitting down with a bankruptcy professional in your area to go over all of the numbers.

FreeAdvice has a member who is a bankruptcy attorney and you could check back to see if "despritfreya" has noticed your thread and has had time to respond.
 
Unfortunately I cannot be of real assistance as I am not all that familiar with California's exemptions. There are two separate exemption that a debtor can elect. The one under CCP 703 is only about $29,000. The one under CCP 704 is between $75,000 and $175,000 depending upon age, marital status, dependants. OP needs to discuss with a local bk attny.

OP, if you cannot fully protect the home then consider filing a Chapter 13 instead. Discuss this with an attny in your area. Consultations are usually free or very low cost.

Des.
 

Sara Abrams

Active Member
Unfortunately I cannot be of real assistance as I am not all that familiar with California's exemptions. There are two separate exemption that a debtor can elect. The one under CCP 703 is only about $29,000. The one under CCP 704 is between $75,000 and $175,000 depending upon age, marital status, dependants. OP needs to discuss with a local bk attny.

OP, if you cannot fully protect the home then consider filing a Chapter 13 instead. Discuss this with an attny in your area. Consultations are usually free or very low cost.

Des.
Thank you all.
 

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