Q: can you claim a homestead exemption in a chapter 13 bankruptcy if you have no equity in your homestead?
Thank you for your answers, it is much appreciated, and very helpful. for a more detailed explanation, I'm a creditor in a 13 case, I have a judicial lien on his homestead and he filed a motion to avoid the judicial lien in its entirety because it impairs etc... he owes 50 grand more than the value, he didnt even claim a homestead exemption in schedule "C" so I was trying to understand why he filed that motion, but it seems he did it because he thinks I'm not going to object or oppose the motion and is somehow trying to get rid of the debt he owes, also no payment plan has been submitted. I tried to keep the question as general as possible so I could learn. Sorry about that karra. and thank you derek, you confirmed the small amount of info that I was able to decipher from those hieroglyphics you guys call "laws" hahaha... feel free to add additional comments that could be helpful, or informative. Or heck if your curious and have no input ask away I enjoy the complexity of law
The short answer is No, you have no equity to exempt. If later it turns out you have equity, then you should be able to modify your schedules to reflect that.
Normally the exemptions play much more importance in a chapter 7 bankruptcy to keep the chapter 7 trustee from selling your home when you have equity.
In a chapter 13, your plan has to pay as much as you would have under a chapter 7. This is where it becomes important to include all of your exemptions if you have a lot of property that a trustee would have sold under a chapter 7.
1 user found this answer helpful
A: Your question is a little confusing but if you have no equity in your home then there probably isn’t really a reason to claim a homestead exemption. I’m not sure if that’s what you are asking? If you are worried about your property you should speak with a bankruptcy lawyer.
1 user found this answer helpful
A: While technically you have nothing to exempt, I always claim a homestead exemption of $1 even if there is no equity. If you need to reopen the bankruptcy to void a judgment lien you were previously unaware of, if there is not homestead exemption, you will be unable to do so. Speak to your bankruptcy attorney.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.