Claiming homestead on sole property in another state.

[LadyInTheRed]

It sounds very risky and if the trustee can sell the home, then the wildcard doesn't mean anything..

If the trustee sells the home, he has to pay you the amount of the exemption you use. So, the wildcard does mean something. Also, the more you can exempt, the more likely it his he'll decide it's not worth going after.

I am better off going back to Texas and reclaiming my residency. At least I can prove that I have lived in the house and have paid the taxes and utilies on it for years.

Be sure to find out how long you need to live there before you can file BK using Texas exemptions.

[looking4work]

I talked to California bankruptcy lawyer today. He said not to file in California and move back to Texas since I can show I have lived in there and have documentation establishing it. I guess a lot of Californians moved back to their home state Texas. I guess it would only pose a problem if I had never lived there, then went there to file bankruptcy.

He also said it's a bad idea to exempt "real property in another state" using the system two method in California since "in rem jurisdiction" is in the state where the property is located, which could create problems.

I'm heading back to Texas.

[HHM]

[quote[I talked to California bankruptcy lawyer today. He said not to file in California and move back to Texas since I can show I have lived in there and have documentation establishing it. I guess a lot of Californians moved back to their home state Texas. I guess it would only pose a problem if I had never lived there, then went there to file bankruptcy.

He also said it's a bad idea to exempt "real property in another state" using the system two method in California since "in rem jurisdiction" is in the state where the property is located, which could create problems.

I'm heading back to Texas. [/quote]

Not sure about that section I highlighted, equity is equity, if you can exempt, it is exempt.

In any event, that is one solution, moving back...but that is not so clear cut as it might seem. In bankruptcy, you only get to claim a states exemption if you have resided their for4 2 year continuously. (there is a whole analysis related to which states exemptions you can actual use in a BK scenario).