Interpreting the CCP 704.720 six month window and
Posted: Mon Aug 26, 2013 7:06 pm
See Wolf v. Jacobson
Sent from my iPad
On Aug 26, 2013, at 12:00 PM, "Alik Segal" wrote:
Listmates,
Here's a question about interpreting the CCP 704.720 six month window and another question about getting authoritative information about scheduled foreclosure sales.
Debtor is in the middle of a chapter 13 plan. He has a condo with a mortgage. He is paying the arrears through the plan. Today he has 50K in equity.
He thinks the condo is too expensive and wants to sell it.
If he sells the condo first and then converts to 7, will his proceeds (presumably about 50K) will be exempt in a new or converted chapter 7 case.
CA CCP sec. 704.720 says that
"(b) The proceeds are exempt for a period of six months after the time the proceeds are actually received by the judgment debtor, except that, if a homestead exemption is applied to other property of the judgment debtor or the judgment debtor's spouse during that period, the proceeds thereafter are not exempt."
1. It seems that if he converts to 7 immediately after selling and receiving the proceeds, the proceeds will be safe regardless of what he does with the money after he receives his discharge. Is this correct?
2. It appears to me that the test of "within six months of receiving the proceeds" must only be passed at filing. I would guess that the trustee should not be able to void section 704.720 protection by keeping the case open beyond six months from sale. Is this correct?
3. I checked on LPSASAP.com for a scheduled continued sale from before the case and I did not find any. Is LPSASAP the final authority on whether or not there is a foreclosure sale scheduled? If not is there such a source?
4. His case was filed in 2010. I believe that a notice of sale is good for 1 year. Is this correct? If so then the bank cannot schedule a sale until they refile the notice of sale.
Alik Segal
Alik.Segal@gmail.com
310-362-6157
California Central District
See Wolf v. Jacobson
Sent from my iPad
On Aug 26, 2013, at 12:00 PM, "Alik Segal" <listserv.inbox@gmail.com> wrote:
Listmates,
Here's a question about interpreting the CCP 704.720 six month window and another question about getting authoritative information about scheduled foreclosure sales.
Debtor is in the middle of a chapter 13 plan. He has a condo with a mortgage. He is paying the arrears through the plan. Today he has 50K in equity.
He thinks the condo is too expensive and wants to sell it.
If he sells the condo first and then converts to 7, will his proceeds (presumably about 50K) will be exempt in a new or converted chapter 7 case.
CA CCP sec. 704.720 says that
"(b) The proceeds are exempt for a period of six months after the time the proceeds are actually received by the judgment debtor, except that, if a homestead exemption is applied to other property of the judgment debtor or the judgment debtor's spouse during
that period, the proceeds thereafter are not exempt."
1. It seems that if he converts to 7 immediately after selling and receiving the proceeds, the proceeds will be safe regardless of what he does with the money after he receives his discharge. Is this correct?
2. It appears to me that the test of "within six months of receiving the proceeds" must only be passed at filing. I would guess that the trustee should not be able to void section 704.720 protection by keeping the case open beyond six months from sale.
Is this correct?
3. I checked on LPSASAP.com for a scheduled continued sale from before the case and I did not find any. Is LPSASAP the final authority on whether or not there is a foreclosure sale scheduled? If not is there such a source?
4. His case was filed in 2010. I believe that a notice of sale is good for 1 year. Is this correct? If so then the bank cannot schedule a sale until they refile the notice of sale.
Alik Segal
Alik.Segal@gmail.com
310-362-6157
California Central District
The post was migrated from Yahoo.