Bankruptcy Homestead Exemption Loophole
If you haven't lived in
your current state for more than two years, your state of residence for bankruptcy
purposes will be the state in which you spent the most time during the 180 day period
before that two year period.
You can then use that
state's homestead exemption. Did you live in a state that had a higher homestead
exemption? If you've been moving around a lot it may be to your advantage to claim one state
over another - if you can.
Bankruptcy Home Search
Can your bankruptcy
trustee come to your home and search your personal possessions?
Yes, it's possible but highly unlikely. Usually this won't happen unless the bankruptcy
trustee becomes convinced that you're not being entirely honest. If they smell a
problem, they have the option of asking the court for a court order.
But
it's not likely unless you do something to induce their mistrust.
Keeping Your Apartment Despite Bankruptcy
It's usually better to file your bankruptcy BEFORE your landlord obtains a judgment for possession. If they manage to file one before you file your bankruptcy, the automatic stay probably won't protect you. As always ask your lawyer.
Also
if your landlord can show that you're using the apartment for any immoral or illegal use
or are doing anything that will damage their property, the stay will probably not protect
you.
New Bankruptcy Law - Keeping Your House
If you intend to hold onto your home be sure to keep your homeowner's insurance paid up. Also pay all your local real estate taxes. To let any of these bills lapse you'll be inviting your creditor to seize the secured asset.
If the lender feels that you're causing their property to be at risk (not inhabiting a home dramatically increases the odds of fire or vandalism) they may also be able to ignore the stay and foreclose on you.
New Creditor Address Requirement
Under the new
bankruptcy law you're required to notify your creditors. The law requires that you use the
precise mailing address the creditor used during at least their last two letters over the
past three months.
If the creditor has placed their address on file with the bankruptcy court - you should
use that address instead.
Using any other addresses may render your stay invalid and permit creditors to continue to pursue their collection activities.
