Bankruptcy question, chap 7. Refinanced home in my name only. Wife is not on mortgage. Filing chap 7 jointly as most credit cards are in our...

Question

Bankruptcy question, chap 7. Refinanced home in my name only. Wife is not on mortgage. Filing chap 7 jointly as most credit cards are in our name. Are we allowed 20k exemption on home because filing joint or 10k because wife is not on mortgage? State is GA

Answer

This is a question that your lawyer should answer. You hired one to file a chp 7 petition, correct?

Answer

First of all, this is a question to direct to your lawyer. It is almost always a catastrophic mistake to file pro se. Do not attempt it, especially with a house at stake. A failure to complete everything properly can result in denial of discharge and even criminal prosecution. Additionally, you may lose exemptions and the property that goes with them through technical missteps. Ask yourself this question: "Do I know what all of the following are and how to address them and/or file them when and if they happen in my case (unless your answer is yes, you need counsel: Motion to lift stay, motion to avoid lien, section 523(a)(2)(B) objection regarding credit card debt, objection to exemptions, objection to discharge, bad faith objection, US trustee objections, etc?"

Whether the wife can claim $10,000 on the home depends on if she remained on the deed after refinancing.

Additionally, given the present decline in real estate values, and the possibility of an unused homestead to protect other property (such as tax refunds, bank accounts, etc), a second issue, which your lawyer will answer, is should either of you use the homestead exemption on your home at all?

Finally, even though joint cases are often wise, there may be situations where a joint case is not the best option.

My office does handle Chapter 7s in your division of court, so if you do not yet have a lawyer, feel free to call me at 404-768-3509 in you wish legal help.

Answer

You have more considerations to address than just that exemption. Because voluntary petitions are complex and require the filer to provide a large amount of financial and personal information, it is incumbent on the filer to ensure that the information is presented in the correct format and in a way that makes the best use of favorable legal theories. You only have one opportunity to get this done right. Your bankruptcy should not be your DIY project.

Feel free to contact my office for a case evaluation. If you require more information in the interim, visit us online at:

http://www.rousecolaw.com

Best of luck,