Want to keep two homes, try to file chapter 7.....

[scgtam]

We have two homes, one is slightly under water where we are living in.

The other home was for my parents in law which my wife consigned with them. They pay their own mortgage and it values about 240k and they have about 50k equity in it.

Obviously the homestead examption will take care of my home as there's no equity, what happen if we file bk? Will the trustee attempt to sell my parents in law house to try to pay our bills?

It also has a twist in it as their house is a below market rate house so the city has to approve it before it get sold.

Can we pretend we live in my parents in law house so we can used the homestead examption on it and keep both of the house?

We owe about 65k credit card bill. Thanks.

[lichteda]

Whose name is on the deed and is the mortgage contract registered.

[scgtam]

I believe my wife and my parents in law are all on the deed. The contracted is also registered in all three name.

Please advise.

[angles]

could be complicated. besides the info you get here i would most certainly consult with the BK attorny.

[lichteda]

scgtam,

First... talk with your lawyer.

You should assume that the Trusteee will pursue any assests he/she can. Additionally, if your name is on an assest, them you have a legal right to a portion of the assests value (no matter what the personal understanding is... ie, mom and pop make the payments and it's "their" home).

That said, my mind would start with the idea that my portion of the assest is limited to my share and is covered under the exemption amount ($24k?? married).

AGAIN, TALK WITH YOUR LAWYER!

But this seems streight forward...

[LadyInTheRed]

Can we pretend we live in my parents in law house so we can used the homestead examption on it and keep both of the house?

Do not pretend anything! Be honest in your petition and everything you do in your bankruptcy. It's not worth committing fraud.

Talk to at least a couple of experienced bankruptcy attorneys. Attorneys have posted here in the past saying that in arrangements where children are on title to their parents homes but have not contributed anything to the purchase of the property and it was never intended that they have any rights to the property, it is possible to argue that you have no "equitable" title in the property. Even without an arguement that your wife has no equitable title, the trustee may not want to bother with a fractional interest in real estate.

Finally, since you have no equity in your own home, you can use exemption system 2 and use the $23,250 wildcard exemption to exempt any property. Depending on how title is held, it sounds like you may be able to cover your wife's interest in her parents' home with that. If the exemption can't cover her entire interest, you can pay the trustee for the non exempt portion.

[AngelinaCatHub]

Lady in red is right on. Not knowing CA rules, do your parent-in-laws have a homestead on this house? Here in FL, you cannot be thrown out of your house except for non payment of mortgage. It can be liened but not taken.

I must state strongly what LinR stated, DO NOT MAKE UP STORIES. That is a sure fire way of getting your case dismissed or worse. NEVER lie under oath and in fact, never lie at all.

Are your parents-in-law paying their own way? If so I believe you can skirt this item. As before stated, you have a lawyer, you must get this in CA law terms. 'Hub