Q: As a renter filing Chapter 7, can I claim the unused portion of the homestead exemption of $13,950 and apply to autos?
This question applies, of course, to the Federal Exemption Schedule amounts.
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A:
No, as a renter filing for Chapter 7 bankruptcy you cannot claim any portion of the homestead exemption or apply it towards other assets like autos.
The homestead exemption under federal bankruptcy exemptions (11 U.S.C. § 522) is intended only for equity in an individual’s primary residence. As a renter, you would not own any real estate or have equity in a home to exempt.
While the maximum homestead exemption is $13,950 for a single individual, that amount is specifically for protecting home equity. It cannot be applied as a general exemption for other personal property.
The exemptions that would apply to vehicles in your Chapter 7 bankruptcy case as a renter would be:
- Up to $4,000 total interest in one motor vehicle (federal wildcard exemption)
- Any remaining exempt equity per state exemption law
So unfortunately there is no way for a renter to make use of the homestead exemption. It only covers equity in a primary residence owned by the filer.
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