Help with filing Homestead Deed

[acjackso]

Firstly, thanks for all the help I have received from the site just from lurking. Now I have a question that I have not really been able to find the answer to specifically.

I had my 341 meeting today and the trustee was nice enough to advise me that I should file a Homestead deed to protect my 2010 tax refund or he would take it. I was not expecting a refund because it has been offset by the dept of Ed for years now. But they sent me a letter stating that they would not do so this year because of the bk and I let the trustee know that up front. My questions are- Which court do I file the deed with? It looks like it needs to be filed with the circuit court? Is there a separate hearing for that? Also do I need to amend my Schedule C since it makes no mention of my tax refund being claimed as exempt? Thanks in advance for any help. I am in chapter 7 bankruptcy in Va by the way.

[justbroke]

Just so that you know, this problem happens to a lot of pro se debtors who believe that they have no assets, and wham... the Trustee finds something.

I believe that the Trustee is talking about the homestead exemption. It is probably your State's -- of the Federal -- unused homestead exemption since you probably don't have a home or are surrendering a home.

The Trustee is being REALLY NICE since he could have just took claim to your refund. The Trustee is offering you the opportunity to amend your schedules (Schedule B/C) to declare and then exempt personal property. A refund is personal property.

Do you have the NoLo guidebook. I suggest that you learn more about exemptions and the exemption schemes available to you in your State. Then amend your Schedules. Also, make note of the local rules regarding Schedule Amendments and the requisite $26 fee to amend.

[ameliabedilia]

I agree- that is a nice trustee! Be grateful and take it as a sign that things are financially going your way now!

[acjackso]

Thank you for the responses. I had the Nolo book checked out from the library and then had to return it(funny side note- I had more trouble convincing the library that I was not trying to include my late fines for the book in the bankruptcy proceedings, then I had at the 341 meeting!) I am going to check it out again this weekend. The trustee also adjourned my 341 meeting to Feb. 14 to give me more than five days to file this and gave me his card to contact his office with any questions. I am feeling really fortunate in my designated trustee *crosses fingers*

So I believe that what I need to do is:

-file homestead deed with city clerk's office for the amount of my expected refund
-serve the Trustee with the homestead deed and an amended Schedule C.
-file the amended Schedule C and proof of service with the Bankruptcy court.

If someone else has experience with this and I have left something out, please let me know! Thank you.

[justbroke]

I don't practice law and I don't know the specific rules and procedures in your District. However, I think you're confused on what the Trustee stated. You may want to call them! In any event, I'll answer your questions.

-file homestead deed with city clerk's office for the amount of my expected refund

I don't think that the Trustee was talking about a homestead "deed". I believe the Trustee was talking about an unused homestead exemption. Do you even have a house?

-serve the Trustee with the homestead deed and an amended Schedule C.

This is a District specific question. For example, my Trustee doesn't want things served on him or her. My Trustee gets updates directly from PACER when there is any change. They hate the paper.

-file the amended Schedule C and proof of service with the Bankruptcy court.

Again, check your local rules. Usually, a schedule doesn't need to be served unless you are including a new creditor.

I would also be careful, because the Trustee has to walk a fine line. The Trustee can't give you legal advice, and this is right on the line (and the actual "how" and what statute to use... is legal advice).

The procedural questions can be asked of your Case Manager in the Clerk's office. Such as, if you need to serve amended schedules on the Trustee. The questions about which Statute scheme to use and what Statute to list on Schedule C, is a legal question and the Trustee probably won't answer it. (The Clerk's office won't answer such a question.)

[Crassius]

He was indeed talking about a Homestead deed

A Homestead deed in personal property must be recorded in your county in the same place and manner as land deeds, even though it is for personal property. This is specific to Virginia.

There is a time limit of 5 days after the 341 meeting.

The applicable laws are in Virginia code section 34... specifically 34-13 that creates this exemption, and 34-14 that gives the form to record. I can't post links yet so google

Virginia code 34-13 and you'll find the laws on the web from a state website. You shoudl read starting at 34 and read that entire area, but those citations are the most appropriate and deal specifically with what your trustee was saying.

34-13 is particularly badly written, but in Va, you can either claim up $5000 (more in some cases) in real estate as exempt homestead, or you can use that $5000 or a portion of it to claim personal property exempt.

[justbroke]

Huh? Who is talking about a homestead deed? You can't record a homestead deed in Virginia for a home in Florida. There is certainly information missing in this thread. The original poster indicated that they were using Florida Exemptions and there is no Homestead Deed in Florida. (There's a homestead declaration but that's totally different in the Bankruptcy context when it comes to exemptions.)

[daxtell]

i live in virginia and when my attorney filed my chapter 7, we also filed a 'homestead deed exemption' that said i keep my personal things like jeep and my bank account money. we filed it in the county where i live.

[justbroke]

i live in virginia and when my attorney filed my chapter 7, we also filed a 'homestead deed exemption' that said i keep my personal things like jeep and my bank account money. we filed it in the county where i live.

This depends on where the property is. This is a person using the Florida bankruptcy exemption scheme, and claiming the Statutory exemption allowed in F.S. 222.25(4).

The original poster is either very confused or using the wrong exemption Scheme. If they were using the Virginia Exemption Scheme, I'd say that they should follow that and file the homestead deed under Virginia Law. However, the poster clearly stated that s/he was using Florida exemptions. You can't mix them.

What the poster needs to do, if using Florida exemptions, is list the correct Florida statute that would protect the tax refund.

As a sidenote, I'm not even sure you can use Florida exemptions as a non-resident. However, just assume that you can. Otherwise, you're probably looking at Federal Exemptions which are better than Florida's, if you don't have a Florida homestead for which you receive the benefit of the exemption.

[debee]

OP is in VA. No mention of FL.

No wait, I see what's going on... a really smart but evil dude has hacked into justbroke's username/password. The real justbroke is probably locked in the bathroom of some cheesehead hotel in Arlington!

[acjackso]

Thanks all for the replies and trying to help. Crassius was correct. That is what I was referring to was the homestead deed as relates to Virginia law. I actually just googled "Homestead deed for personal property in Virginia" and used the example that I found on the website making sure that the info outlined in the law code was indeed included. I did file it with our Circuit Court Clerk's office and provided a stamped copy to my trustee. Once the trustee received it, his secretary let me know that they are filing a no asset, I don't have to attend the second 341 meeting, and I should receive a discharge in 30 days! Woohoo! This will be the first tax refund I have seen in years and I plan to use it to help me rebuild my credit.

[justbroke]

OP is in VA. No mention of FL.

No, they mentioned Florida exemptions. This now has disaster written all over it. LOL

[debee]

No, they mentioned Florida exemptions. This now has disaster written all over it. LOL

I can't see FL exemptions anywhere in the OP's posts. Last line of the first post he says he's doing a chapter 7 in VA. Now go let the real justbroke out of the closet, you imposter.

[justbroke]

Wow, must be too many threads I'm in because I thought I even went back and re-read.

[debee]

It's not like you, but I suppose every now and then even God himself farts.