What about the homestead exemption? Let’s use the exact words of the law as to what is considered a homestead in California. Section 704.710 (c) of the California Code of Civil Procedure states that “”Homestead” means the principal dwelling (1) in which the judgment debtor or the judgment debtor’ spouse resided on the date the judgment creditor’s lien attached to the dwelling, and (2) in which the judgment debtor or the judgment debtor’s spouse resided continuously thereafter until the date of the court determination that the dwelling is a homestead. Where exempt proceeds from the sale or damage or destruction of a homestead are used toward the acquisition of a dwelling within the six-month period provided by Section 704.720, “homestead” also means the dwelling so acquired if it is the principal dwelling in which the judgment debtor or the judgment debtor’s spouse resided continuously from the date of acquisition until the date of the court determination that the dwelling is a homestead, whether or not an abstract or certified copy of a judgment was recorded to create a judgment lien before the dwelling was acquired.”

 

From a plain reading of this section, what constitutes a homestead can actually be quite complicated. You will notice that it also refers to Section 704.720, which talks about a six-month period. So what is this six-month period all about?

 

Before we go into that period of time, the law does actually talk about what a “dwelling” is to qualify as a “homestead”. For instance, if you live in a tree house that you spent $100K to build, does your tree house qualify as a homestead? Or, let’s say you live in coach van that you spent $100K to remodel into your home where you live, does your coach van qualify as your homestead? For that we look to 704.710 (a) which states “Dwelling” means a place where a person resides and may include but is not limited to the following:

(1) A house together with the outbuildings and the land upon which they are situated.

(2) A mobile home together with the outbuildings and the land upon which they are situated.

(3) A boat or other waterborne vessel.

(4) A condominium, as defined in Section 783 of the Civil Code.

(5) A planned development, as defined in Section 11003 of the Business and Professions Code.

(6) A stock cooperative, as defined in Section 11003.2 of the Business and Professions Code.

(7) A community apartment project, as defined in Section 11004 of the Business and Professions Code.”

 

So would a tree house or a coach van you actually live in qualify as homestead? Probably yes because Section 704.410(a) states that dwelling “may include but is not limited to the following”.

 

But let’s say that while you were in bankruptcy, Tarzan offered to buy your tree house for $100K and you got court permission to sell it to Tarzan. What happens to the $100K cash that you now have in your pocket, is it still exempt, in other words, is that cash of $100K also exempt?

 

That’s when the six-month period comes in, that 704.720 talks about. It says that you have to reinvest the entire $100K in another dwelling that qualifies as a homestead. If you don’t do this, the bankruptcy trustee can ask you to turnover the $100K to him or her because you did not reinvest the $100K in another homestead. This reinvestment can be tricky. You have to actually buy another dwelling with the $100K, actually live in it as your homestead, within the six-month period. What happens if you don’t?

 

If you don’t reinvest in six months in another dwelling that qualifies as a homestead, you will lose the $100K cash that you got from Tarzan because the $100K is only exempt for six months. If it’s reinvested correctly within the six months period, and you actually move into and live in it as your homestead until the court determines that it’s actually your homestead, then your home free. Otherwise, you are going to be in a very bad situation where you will wish that you were never born. You are going to be living a nightmare on Elm Street for a long time, probably until you die. It’s going to be never-ending horrors show where you are the victim.

 

You are going to be literally in the lion’s den.

 

 

 

KNEEL DOWN AND HUMBLY ASK FOR GOD TO GUIDE YOU TO BE AN HONEST DEBTOR

 

Here’s the most important thing you have to do, kneel down be humble and sincerely ask God for his help to guide you to steer you clear of landing in this situation, or if you are already in it, to give you a pathway to get out of it alive. If you really are an honest debtor and blameless like Daniel before the eyes of God, do not despair; God has made a pathway to save you and grant you relief from your debts.

 

GOD RESCUES THE PROPHET DANIEL FROM THE LIONS’ DEN

 

 

In chapter 6 of the book of Daniel, the prophet Daniel was sentenced by King Darius to die in a den of lions. If you are in chapter 7 and the UST has filed a motion to dismiss your case with prejudice, you are now like Daniel.

 

So Daniel is now in the lions’ den getting ready to be eaten. But lo and behold, our God sends an angel into the lions’ den and closes their mouths!

 

“Daniel, servant of the living God, has your God, whom you serve continually, been able to rescue you from the lions? Asks king Darius.

 

“May the king live forever! My God sent his angel, and he shut the mouths of the lions. The have not hurt me, because I was found innocent in his sight. Nor have I ever done any wrong before you, your majesty.”

 

“I issue a decree that in every part of my kingdom people must fear and reverence the God of Daniel. For He is the living God and He endures forever His kingdom will not be destroyed, His dominion will never end. He rescues and He saves; He performs signs and wonders in the heavens and on the earth. He has rescued Daniel from the power of the lions.”

 

CURRENT ONGOING PROOF GOD IS ALMIGHTY

INCORRUPTIBLE BODY OF CARLO ACUTIS DIED 2007 AT AGE OF 15

 

Look at the incorruptible body of the blessed Carlo Acutis who died at 15 in 2007. You can look at his body in Rome, Italy, now 14 years after his death. He looks like he’s just asleep in his jogging suit and rubber shoes!  That is a perfect example of an ongoing sign on earth that the God of Daniel, our God, my God, is almighty and all-powerful that He even suspends the natural laws of biology and physics without any effort. He resurrected His one and only beloved son from death on the cross. He has power over death.

 

I have actually thought, “What would the other religions believe if they actually saw the incorruptible body of the blessed Carlo Acutis? I think even Buddha, if he were alive today, would truly believe that Yahweh is the one True God.” No need to think about reincarnation and nirvana because his incorruptible body is available for all to see in Rome, Italy. We won’t need any kind of explanation on the efficacy of modern day mummification. Come on, man, that’s all bull. The truth is in plain sight. Believe your own eyes, that the one true God is all-powerful and His name is Yahweh, “I am who am.”

 

If you need debt relief, set an appointment to see me. I will analyze your case personally.

 

Disclaimer: None of the foregoing is considered legal advise for anyone. There is absolutely no attorney client relationship established by reading this article.

 

“God says, “I will save those who love and will protect those who acknowledge me as Lord. When they call to me, I will answer them; when they are in trouble, I will be with them. I will rescue them and honor them. I will reward them with long life; I will save them,” Psalm 91 written by Moses more than 2,000 years ago.

 

Lawrence B. Yang is a graduate of Georgetown University with a Master’s Degree in Law and specializes in Bankruptcy, Business, Real Estate and Civil Litigation.  He speaks English, Mandarin and Fujian and has successfully represented thousands of clients in California, including companies overseas.  Please call Angie, Barbara or Jess at (626) 284-1142 for an appointment at 20274 Carrey Road, Walnut, CA 91789 or1000 S. Fremont Ave., Mailstop 58, Building A-10 South Suite 10042, Alhambra, CA 91803.