Expert: Mark J. Markus- California Bankruptcy Attorney - 5/20/2009

Question
QUESTION: I'm unemployed and about to file chapter 7. I live in California and my mother's house is in a small village in Pennsylvania. Both our names are on the deed. The house is paid for (approx. selling value of $12,000). Can I lose my mother's house by filing bankruptcy?
Thank you for your help.

ANSWER: It's probably safe at $12,000 (unless you meant $120,000) but it really depends on what other assets you have that need to be exempted.

For more on exemptions see http://www.bklaw.com/exemptions.html

---------- FOLLOW-UP ----------

QUESTION: Thank you for your previous answer. I have one more question. I made a cash advance on 3/31 of $1,200 (to pay rent)on one of the cards I'm including in my BK. That amount may not be discharged, but what about the rest of the amount on that card(over $17,000)? Will I be able to have the rest discharged or not? I can't wait 70 days to file.

Answer
Most debts are dischargeable unless the creditor in question timely objects to the discharge of the debt and is successful in proving at trial that you did not intend or have a reasonable expectation of repaying the debt in question on the date the debt was incurred.  For debts incurred for "luxury goods" within 70 days prior to filing bankruptcy, the burden of proof shifts from the creditor to the debtor to prove the intent element.