A homestead exemption is a legal provision that allows homeowners to protect a certain amount of equity in their primary residence from being seized by creditors in the event of bankruptcy.
The U.S Bankruptcy Code provides numerous exemptions that allow people filing bankruptcy to shield and keep the property they own. But some states do not use the federal law to protect property in bankruptcy they use the law of the state where the case if filed. These laws are called exemption laws.
Filing bankruptcy without losing house happens all the time. This is usually one of biggest concern with my clients that own property. It’s understandable that there is so much concern about filing bankruptcy without losing house since our homes are usually are largest asset (and usually our largest debt). Most people are able to keep… Continue reading Bankruptcy without losing house