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House Swap before filing
Potential CH11 client has owned two houses for 15 years or more. Present
residence is underwater, daughter and family live in second house which has
equity. Client has considered downsizing and swapping houses which would
make sense putting the growing family in the larger house and the near
retirement couple in the smaller.
California Civil homestead at 704.710(c) c) "Homestead" means the principal
dwelling (1) in which the judgment debtor or the judgment debtor's spouse
resided on the date the judgment creditor's lien attached to the dwelling. .
. There is a prejudgment writ of attachment, which creates a judicial lien
on real property. However CCP 493.030(b) terminates the attachment when a
bankruptcy petition is filed; so when he files the judicial lien goes away.
Client wants to swap house and use his homestead to protect the equity in
the smaller house. We are about two weeks from projected filing date. Has
anyone tried this?
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Best regards
Larry Webb
California Board of Legal Specialization
Certified Specialist in Bankruptcy Law
State Bar of California 229344
Central District California
"A Debt Relief Agency"
Law Offices of Larry Webb
484 Mobil Ste 43
Camarillo Ca 93010
P 805.987.1400
C 805.750.2150
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