In re Gilman
Facts: An owner living in a residential property files for bankruptcy. The owner claims a homestead exemption for the property. At the time of filing, the property is in escrow pending a sale to a buyer.
Claim: The owner seeks a homestead exemption for a property, claiming the exemption is valid since the property is the owner’s undisputed residence.
Counterclaim: The creditor seeks to deny the owner’s homestead exemption since the owner did not intend to reside in the property as it is in the process of being sold.
Holding: A California court of appeals holds the owner cannot claim the homestead exemption and their occupancy of the property is not sufficient to establish residency since the owner did not intend to make the property their permanent residence. [In re Gilman (April 13, 2018)_CA5th_]
Editor’s note — See the Declaration of Homestead form published by RPI (Realty Publications, Inc.). [See RPI form 465]