Re: Can I keep my home?

Probably not--the maximum exemption in California is $150,000 for your home, if you're over 65, disabled or low income. Otherwise, it's $50,000 for a single person and $75,000 for a married couple. If you filed for Chapter 7, the trustee would likely file a motion to sell your home and use the excess equity (above the exemption, and after sales costs) to distribute to your creditors. In the alternative, they may allow you to refinance the home to pay your creditors an amount roughly equivalent to what they would have received if the home was sold.

If the above are not good options, you may want to look at negotiating with your creditors instead--this is also something an attorney can help you do.

Re: Can I keep my home?

If you're over 65 or earned less than $15,000 gross last year, there is a possibility that you would not lose your home under your facts. Otherwise, the Trustee would likely sell it.

I have at least 3 possible options to keep your home

Hello, I am Gary Fraley founder and owner California Bankruptcy Attorneys. I have been practicing bankruptcy law for 27 years. I am one of only 93 state bar certified bankruptcy specialists in California. My office is in Sacramento but I do bankruptcy cases statewide with my online office. I regularly handle cases in the Northern District where you are located. I do a free attorney consultation by phone. No charge, no pressure and no obligation. I will review your situation and advise you of all your options. You can find out more about me and my firm at ca-bankruptcy-attorneys.com.

Even if you qualify for the $150,000 homestead exemption you will still have too much unprotected equity to keep the home. With an estimated 8% cost of sale ($32,000) there would still be a net of $18,000 for creditors.

This may be overcome 3 ways. 1st If you have someone who would be able to LOAN you the reachable equity and take a deed of trust back so there is nothing reachable by the Trustee you keep your home. 2nd If you can get find the funds to buy the trustee out that will work too. 3rd you may be able to keep your home by doing a Chapter 13 Reorganization and may be not have to pay the unsecured creditors all they are owed. I think that this option should be explored in detail.

If you want a free attorney consultation with me just call my staff at 1-800-675-1005 and they will be happy to set up the appointment

I look forward to helping you solve this problem.

Re: Can I keep my home?

The equity in your property exceeds the allowable exemptions in california.