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Proceeds from sale / homestead exemption
Thanks to all who have answered....
As to why she needs a bankruptcy, I had mixed emotions on that one....
At first, I was considering using the proceeds to simply settle her credit card debt...she owes around $50K. and conceivably I could do rather well at that, given I've done it before with really good results (good in my humble opinion, I can usually average around 30 35% average), and sometimes lower. But then I was thinking well, maybe the BK is not such a bad idea, assuming the proceeds can be exempted.considering her health/employment situation (income of about a grand a month of social security, period), and the fact that she has no retirement plan or anything else, these proceeds essentially ARE her retirement. So, maybe better to exempt them and just dump the credit card debt in a BK. Thoughts?
The IRA idea is an interesting one as well. If she puts the money in the IRA, the whole $70K, any issues with that? I can't off the top of my head remember the parameters in that regard, though I recall it was discussed quite recently here....
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> Todd:
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> Why does she need a bankruptcy?
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> If you have any questions or concerns, please contact me.
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> Pat
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> Patrick T. Green, Esq.
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> Fitzgerald & Green
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> Attorneys at Law
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> 1010 E. Union Street
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> Suite 206
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> Pasadena, CA 91106
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> Tel: 626-449-8433
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> Fax: 626-449-0565
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> pat@...
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>
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> t_mannis
> Sent: Tuesday, December 22, 2009 3:40 PM
> To: cdcbaa@yahoogroups.com
> Subject: [cdcbaa] Re: Proceeds from sale / homestead exemption
>
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> Thanks for the quick response, Dennis! So, I'm reading Section 701.960:
>
> a) "If a declared homestead is voluntarily sold, the proceeds of sale are
> exempt in the amount provided by Section 701.730 for a period of six months
> after the date of sale."
>
> b) "If the proceeds of a declared homestead are invested in a new dwelling
> within six months after the date of a voluntary sale or withing six months
> after proceeds of an execution sale.... the new dwelling may be selected as
> a declared homestead......"
>
> In this situation, not that it matters, it was an execution sale, as the
> house had foreclosed. The point is, unless she puts it into a new house,
> Trustee simply waits and demands turnover. And, seeing as how she she is
> disabled, pulls in only social security, she couldn't possibly put it in a
> new home, because she can't come close to affording it or even qualifying.
> So, sounds like she's toast as far as exempting those proceeds is concerned.
>
>
> Hoping I'm wrong and have completely misinterpreted this,
>
> Todd
>
> --- In cdcbaa@yahoogroups.com , Dennis
> McGoldrick wrote:
> >
> > Homestead is automatically adjusted as statute grows, but two caveats,
> > 1 check to see if dollar amount fixed by sale date, and
> > 2 homestead transferred to sale proceeds dies six months after sale.
> Trustee can wait 6 months and demand turnover.
> > D
> >
> > Sent from my iPhone
> >
> > On Dec 22, 2009, at 12:41 PM, "t_mannis" wrote:
> >
>
The post was migrated from Yahoo.
There are income parameters on it depending on the kind of IRA, and they
must report at least that much income to be able to contribute it.
Google "contribution limits for [insert type of IRA]" and you'll know
what they are, and just make sure she reports at least that much income
The post was migrated from Yahoo.
Todd:
Why does she need a bankruptcy?
If you have any questions or concerns, please contact me.
Pat
Patrick T. Green, Esq.
Fitzgerald & Green
Attorneys at Law
1010 E. Union Street
Suite 206
Pasadena, CA 91106
Tel: 626-449-8433
Fax: 626-449-0565
pat@fitzgreenlaw.com
The post was migrated from Yahoo.
charset="windows-1251"
Would it help to invest the proceeds or some or all of the proceeds she
cannot protect with the Wildcard exemption or she has not spent by the time
you file the petition in IRA account(s)?
The post was migrated from Yahoo.
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Yes, this is an INVOLUNTARY SALE, so 701.960(a) is not relevant. I am not
aware of any time limit for holding exempt funds if there is an involuntary
sale.
David A. Tilem
Certified Bankruptcy Specialist*
Law Offices of David A. Tilem (a debt relief agency)
206 N. Jackson Street, #201, Glendale, CA 91206
Tel: 818-507-6000 Fax: 818-507-6800
* Bankruptcy specialist cert. by State Bar of CA Bd of Legal
Specialization.
t_mannis
Sent: Tuesday, December 22, 2009 3:40 PM
To: cdcbaa@yahoogroups.com
Subject: [cdcbaa] Re: Proceeds from sale / homestead exemption
Thanks for the quick response, Dennis! So, I'm reading Section 701.960:
a) "If a declared homestead is voluntarily sold, the proceeds of sale are
exempt in the amount provided by Section 701.730 for a period of six months
after the date of sale."
b) "If the proceeds of a declared homestead are invested in a new dwelling
within six months after the date of a voluntary sale or withing six months
after proceeds of an execution sale.... the new dwelling may be selected as
a declared homestead......"
In this situation, not that it matters, it was an execution sale, as the
house had foreclosed. The point is, unless she puts it into a new house,
Trustee simply waits and demands turnover. And, seeing as how she she is
disabled, pulls in only social security, she couldn't possibly put it in a
new home, because she can't come close to affording it or even qualifying.
So, sounds like she's toast as far as exempting those proceeds is concerned.
Hoping I'm wrong and have completely misinterpreted this,
Todd
McGoldrick wrote:
>
> Homestead is automatically adjusted as statute grows, but two caveats,
> 1 check to see if dollar amount fixed by sale date, and
> 2 homestead transferred to sale proceeds dies six months after sale.
Trustee can wait 6 months and demand turnover.
> D
>
> Sent from my iPhone
>
> On Dec 22, 2009, at 12:41 PM, "t_mannis" wrote:
>
charset="windows-1251"
Message
Yes, this is an INVOLUNTARY
SALE, so 701.960(a) is not relevant. I am not aware of any time limit for
holding exempt funds if there is an involuntary sale.
David A.
Tilem
Certified Bankruptcy
Specialist*
The post was migrated from Yahoo.
Thanks for the quick response, Dennis! So, I'm reading Section 701.960:
a) "If a declared homestead is voluntarily sold, the proceeds of sale are exempt in the amount provided by Section 701.730 for a period of six months after the date of sale."
b) "If the proceeds of a declared homestead are invested in a new dwelling within six months after the date of a voluntary sale or withing six months after proceeds of an execution sale.... the new dwelling may be selected as a declared homestead......"
In this situation, not that it matters, it was an execution sale, as the house had foreclosed. The point is, unless she puts it into a new house, Trustee simply waits and demands turnover. And, seeing as how she she is disabled, pulls in only social security, she couldn't possibly put it in a new home, because she can't come close to affording it or even qualifying. So, sounds like she's toast as far as exempting those proceeds is concerned.
Hoping I'm wrong and have completely misinterpreted this,
Todd
>
> Homestead is automatically adjusted as statute grows, but two caveats,
> 1 check to see if dollar amount fixed by sale date, and
> 2 homestead transferred to sale proceeds dies six months after sale. Trustee can wait 6 months and demand turnover.
> D
>
> Sent from my iPhone
>
> On Dec 22, 2009, at 12:41 PM, "t_mannis" wrote:
>
The post was migrated from Yahoo.
Homestead is automatically adjusted as statute grows, but two caveats,
1 check to see if dollar amount fixed by sale date, and
2 homestead transferred to sale proceeds dies six months after sale. Trustee can wait 6 months and demand turnover.
D
Sent from my iPhone
On Dec 22, 2009, at 12:41 PM, "t_mannis" wrote:
The post was migrated from Yahoo.
Client is 62 year old woman. Her house forecloses a short while ago, and there was some equity. She receives proceeds of $70,000, which at this point is still an uncashed check.
First question: I recall reading here that with regard to proceeds, you're OK, AS LONG AS a homestead was actually filed/recorded on the property. Is this accurate?
Second question: OK, I asked her if she had ever in fact filed a homestead declaration, and to my delight, the answer was yes, some years ago, but ABSOLUTELY. So, ok, IF she filed years ago, and at that time her exemption was $50,000, is that number etched in granite? In other words, if she files after January 1, 2010, when the exemption goes up to $75,000, can I then claim the increased amount? I would imagine so, as I can't imagine being trapped at the amount of the exemption at the time the homestead was filed, but want to be sure.
Third question: On a related note, as mentioned, she is 62, not receiving disability, but probably would fit the definition of disabled due to the fact that she receives dialysis which would make employment next to impossible. Moreover, her gross income is less than $15,000, thereby qualifying her for the big exemption. Again, does the fact that at the time she filed her homestead she wasn't disabled matter, or can she claim the full $150,000 (or $175,000 as of January 2010)?
Todd Mannis, Esq.
4766 Park Granada
Suite 101
Calabasas, California 91302
Tel: (818) 591-9890
The post was migrated from Yahoo.