Washington lets filers use the homestead exemption under either the federal or Washington state exemption system. However, you can’t mix exemptions from both lists, so select the system that will protect your most important assets.
To help you make an informed choice, we’ve listed the federal and Washington homestead exemption amounts below. We’ve also included links to more complete lists so you’ll have an easier time deciding which set will work best for you. If you’re married, remember that spouses can double some exemption amounts, but not all. Find out about other filing considerations for spouses.
Federal Homestead Exemption |
Washington Homestead Exemptions |
|
Homestead exemption amount |
$27,900 |
Homestead exemption amounts depend on the county and the previous year's median value. For instance, 2023 homestead exemptions ranged from $207,100 to $914,300. |
Can spouses who file a joint bankruptcy double the exemption? |
$55,800 is available to spouses who co-own property. |
See acreage limits below. |
Homestead exemption law |
11 U.S.C. § 522(d)(1) |
Wash. Rev. Code Ann. § 6.13.030 |
Other information |
Amounts will adjust on April 1, 2025. |
See below. |
Compare other federal and state exemptions. |
You can use the Washington homestead exemption to protect a house, condominium, mobile, or manufactured home serving as your principal residence. You can use the homestead exemption to protect personal property used as a residence, such as a mobile home, but the exemption amount is reduced significantly. (Wash. Rev. Code Ann. § 6.13.030.)
You can file for bankruptcy in Washington after living there for over 180 days. However, you must live in Washington much longer before using Washington exemptions, at least 730 days before filing, to be exact. Otherwise, you’d use the previous state’s exemptions.
But suppose you lived in multiple states during the two years before filing for bankruptcy. In that case, you'd use the exemptions of the state you lived in for most of the 180 days before the two years immediately preceding your filing. (11 U.S.C. § 522(b)(3)(A).) Learn more about filing for bankruptcy after moving to a new state.
Also, to claim the total value of the Washington homestead exemption, you must have purchased and owned the property for at least 1,215 days before the bankruptcy filing. If you can't meet this requirement, your homestead exemption will be limited to the current federal cap.
You'll also need to meet other requirements. Find out more about keeping your home in Chapter 7 or Chapter 13.
You can search for Washington exemption laws on the Washington State Legislature webpage. However, most statutes don't include updated amounts, and understanding statutory requirements can be challenging. It's best to consult with a local bankruptcy lawyer.
Bankruptcy mistakes, such as improperly disclosing or exempting assets, can be costly and often occur when filing without a bankruptcy lawyer. We've covered some of the most basic rules you'll encounter when protecting your home in bankruptcy. However, you must also meet other timing and exemption requirements to prevent losing your home.
A local bankruptcy lawyer’s knowledge and expertise will help you avoid losing your home and other valuable assets and ensure you maximize the homestead exemption.
Did you know Nolo has made the law easy for over fifty years? It’s true, and we want to ensure you find what you need. Below, you’ll find more articles explaining how bankruptcy works. And don’t forget that our bankruptcy homepage is the best place to start if you have other questions!
Our Editor's Picks for You |
|
More Like This |
Which Bankruptcy Chapter Should I File to Keep My House? |
What to Consider Before Filing Bankruptcy |
Preparing for Bankruptcy: What to Do With Bank Accounts, Automatic Payments, and Utility Deposits |
Helpful Bankruptcy Sites |
We wholeheartedly encourage research and learning, but online articles can't address all bankruptcy issues or the facts of your case. The best way to protect your assets in bankruptcy is by hiring a local bankruptcy lawyer.
Updated December 19, 2023
]]>Under the Colorado exemption system, homeowners can exempt up to $250,000 of their home or other property covered by the homestead exemption. The homestead exemption is $350,000 if the homeowner, spouse, or dependent is disabled or 60 or older. In Colorado, spouses cannot double the homestead exemption.
Example 1. If you own a house worth $370,000 and have a mortgage balance of $330,000, you have $40,000 of equity in the property. If you file a Chapter 7 bankruptcy, you can use the Colorado homestead exemption to protect all equity.
Example 2. Assume your mortgage is only $20,000 and can only exempt $250,000 of your $350,000 of equity. The Chapter 7 bankruptcy trustee would likely sell your house, give you $250,000 from the proceeds for your exemption, and use any amount remaining after deducting sales costs to pay unsecured creditors. If you wanted to keep the home, you could file for Chapter 13 and pay the $100,000 nonexempt equity portion to unsecured creditors through the Chapter 13 plan.
In Colorado, the homestead exemption applies to real property, such as your home or condominium. It will also protect a mobile home, manufactured home, or house trailer. You must occupy the property in order to take advantage of the homestead exemption.
The homestead exemption also applies to the sale proceeds of the property. The sale proceeds are exempt for two years after they are received. Also, a deceased owner’s spouse or children can claim the homestead exemption.
Some states allow bankruptcy filers to use the federal bankruptcy exemptions instead of the state exemptions. Colorado is not one of those states. If you reside in Colorado, you must use the state exemptions. Find out more about choosing the correct bankruptcy exemptions.
In Colorado, the homestead exemption is usually automatic, and you don’t have to file a homestead declaration in order to claim the homestead exemption in bankruptcy. However, with regard to certain older obligations incurred prior to July 1, 1975, the homestead exemption might not be available unless a homestead declaration is recorded.
Colorado’s homestead exemption is found in the Colorado Revised Statutes § 38-41-201 through § 38-41-209. To learn how to find state statutes, check Laws and Legal Research.
Colorado’s exemption amounts, including the homestead exemption, are adjusted periodically for inflation. You can find Colorado's statutes here or consult a bankruptcy attorney for the current homestead amount.
Did you know Nolo has made the law easy for over fifty years? It’s true, and we want to ensure you find what you need. Below you’ll find more articles explaining how bankruptcy works. And don’t forget that our bankruptcy homepage is the best place to start if you have other questions!
Our Editor's Picks for You |
|
More Like This |
Which Bankruptcy Chapter Should I File to Keep My House? |
What to Consider Before Filing Bankruptcy |
Preparing for Bankruptcy: What to Do With Bank Accounts, Automatic Payments, and Utility Deposits |
Helpful Bankruptcy Sites |
We wholeheartedly encourage research and learning, but online articles can't address all bankruptcy issues or the facts of your case. The best way to protect your assets in bankruptcy is by hiring a local bankruptcy lawyer.
Updated December 18, 2023
]]>Texas lets filers use the homestead exemption under either the federal or Texas state exemption system. However, you can’t mix exemptions from both lists, so select the system that will protect your most important assets.
To help you make an informed choice, we’ve listed the federal and Texas homestead exemption amounts below. We’ve also included links to more complete lists so you’ll have an easier time deciding which set will work best for you.
If you’re married, remember that spouses can double some exemption amounts, but not all. Find out about other filing considerations for spouses.
Federal Homestead Exemption |
Texas Homestead Exemption |
|
Homestead exemption amount |
$27,900 |
Unlimited |
Can spouses who file a joint bankruptcy double the exemption? |
$55,800 is available to spouses who co-own property. |
See acreage limits below. |
Homestead exemption law |
11 U.S.C. § 522(d)(1) |
Tex. Prop. Code §§ 41.001 – 41.0241 |
Other information |
Amounts will adjust on April 1, 2025. |
Ten city acres or 100 rural acres. A family can double to 200 rural acres. |
Compare other federal and state exemptions. |
The Texas homestead exemption applies to real property serving as your primary residence, such as your home or condominium. Texas considers any improvements such as a swimming pool, barn, water tower, pumps, roads, and other items substantially affixed to your primary residence part of the homestead exemption. The unlimited homestead exemption also applies to a burial plot.
You can file for bankruptcy in Texas after living there for over 180 days. However, you must live in Texas much longer before using Texas exemptions, at least 730 days before filing, to be exact. Otherwise, you’d use the previous state’s exemptions.
But suppose you lived in multiple states during the two years before filing for bankruptcy. In that case, you'd use the exemptions of the state you lived in for most of the 180 days before the two years immediately preceding your filing. (11 U.S.C. § 522(b)(3)(A).) Learn more about filing for bankruptcy after moving to a new state.
Also, to claim the total value of the Texas homestead exemption, you must have purchased and owned the property for at least 1,215 days before the bankruptcy filing. If you can't meet this requirement, your homestead exemption is limited by federal law to $189,050 (this figure will be adjusted on April 1, 2025).
You'll also need to meet other requirements. Find out more about keeping your home in Chapter 7 or Chapter 13.
You can search for Texas exemption laws on the Texas Constitution and Statutes homepage or visit Texas Bankruptcy Exemptions. However, most statutes don't include updated amounts, and understanding statutory requirements can be challenging. It's best to consult with a local bankruptcy lawyer.
Bankruptcy mistakes, such as improperly disclosing or exempting assets, can be costly and often occur when filing without a bankruptcy lawyer. We've covered some of the most basic rules you'll encounter when protecting your home in bankruptcy. However, you must also meet other timing and exemption requirements to prevent losing your home.
A local bankruptcy lawyer’s knowledge and expertise will help you avoid losing your home and other valuable assets and ensure you maximize the homestead exemption.
Did you know Nolo has made the law easy for over fifty years? It’s true, and we want to ensure you find what you need. Below, you’ll find more articles explaining how bankruptcy works. And don’t forget that our bankruptcy homepage is the best place to start if you have other questions!
Our Editor's Picks for You |
|
More Like This |
Which Bankruptcy Chapter Should I File to Keep My House? |
What to Consider Before Filing Bankruptcy |
Preparing for Bankruptcy: What to Do With Bank Accounts, Automatic Payments, and Utility Deposits |
Helpful Bankruptcy Sites |
We wholeheartedly encourage research and learning, but online articles can't address all bankruptcy issues or the facts of your case. The best way to protect your assets in bankruptcy is by hiring a local bankruptcy lawyer.
Updated October 5, 2023
]]>In this article, you’ll learn how to find Virginia’s current homestead exemption amount and apply it in your bankruptcy case. We also explain other requirements you must meet when filing for bankruptcy in Virginia.
Under the Virginia exemption system, homeowners can exempt up to $25,000 of equity in a home or other property covered by the homestead exemption. The exemption applies to real property, which includes your home or condominium and personal property used as a residence, so your mobile home would also be covered.
The Virginia homestead exemption also allows individuals to deduct an additional $5,000 in real or personal property (including cash), or $10,000 if the debtor is 65 or older. This exemption type is often called a “wildcard” exemption. So you'll have $25,000 to protect your home, plus an additional $5,000 to $10,000 to use toward your home or any other property of your choosing.
Example. Suppose your house is worth $100,000. You have a $78,000 mortgage on the property, leaving $22,000 of home equity. If you file bankruptcy, your equity will be fully exempt using the $25,000 residential portion of the homestead exemption. Your creditors won’t be able to touch your equity, and you will keep your home. You’ll also be able to use the $5,000 wildcard portion toward any other property you choose.
If the property is held as a tenancy in the entirety, the property is jointly owned as a single marital entity, not as an individual. Holding property as a tenancy by the entirety might protect all of the equity in your residence if only one spouse files the bankruptcy case. However, this is one of the trickier rules in bankruptcy, so consult with a local bankruptcy attorney.
You can file for bankruptcy in Virginia after living there for over 180 days. However, you must live there for at least 730 days before using the Virginia exemptions. Otherwise, you’d use the previous state’s exemptions.
The calculation is different if you weren’t living in one particular state two years before your bankruptcy filing. You’d use the exemptions of the state you lived in for most of the 180 days before the two years immediately preceding your filing. (11 U.S.C. § 522(b)(3)(A).)
Learn more about filing for bankruptcy after moving to a new state.
Virginia’s homestead exemption is in the Code of Virginia Title 34. Specifically, the laws in Chapter 2, Sections 34-4 through 34-25 address the homestead exemptions of householders. The Code of Virginia is found online on the Virginia General Assembly website. If you need help finding state statutes, check out Laws and Legal Research.
Bankruptcy mistakes, such as improperly disclosing or exempting assets, can be costly and often occur when filing without a bankruptcy lawyer. A local bankruptcy lawyer’s knowledge and expertise will help you avoid losing your home and other valuable assets and ensure you maximize the homestead exemption.
Did you know Nolo has made the law accessible for over fifty years? It’s true, and we want to ensure you find what you need. Below, you’ll find more articles explaining how bankruptcy works. And don’t forget that our bankruptcy homepage is the best place to start if you have other questions!
Our Editor's Picks for You |
|
More Like This |
Which Bankruptcy Chapter Should I File to Keep My House? |
Other Articles You Might Enjoy |
Preparing for Bankruptcy: What to Do With Bank Accounts, Automatic Payments, and Utility Deposits |
Helpful Bankruptcy Sites |
We wholeheartedly encourage research and learning, but online articles can't address all bankruptcy issues or the facts of your case. The best way to protect your assets in bankruptcy is by hiring a local bankruptcy lawyer.
Updated October 5, 2023
]]>You'll use Utah's homestead exemption to protect some or all of your home's equity in Utah. Although some states allow filers to use federal bankruptcy exemptions, Utah is not one of them.
To help you make an informed choice, we’ve listed the homestead exemption amount below and have included links to more complete exemption lists.
If you’re married, keep in mind that spouses can double some exemption amounts, but not all. Find out about other filing considerations for spouses.
Utah Homestead Exemption |
|
Homestead exemption amount |
$45,100; $5,400 if not primary residence |
Can spouses who file a joint bankruptcy double the exemption? |
No. |
Homestead exemption law |
Utah Code Ann. §§ 78B-5-503; 78B-5-504 |
Other information |
Mobile home and water rights can be included; amounts are subject to change periodically. |
Where to find other exemptions. |
Under the Utah exemption system, homeowners can exempt up to $45,100 of their home or other property covered by the homestead exemption, such as a mobile home. You can use the homestead exemption to protect more than one parcel of land, but you can protect only up to one acre total. (Utah Code Ann. § 78B-5-504.)
Also, you can exempt up to $5,400 in real estate that is not your primary residence. (Utah Code Ann. § 78B-5-503.)
You can file for bankruptcy in Utah after living there for over 180 days. However, you must live in Utah much longer before using Utah exemptions (if that's the set you choose to use), at least 730 days before filing, to be exact. Otherwise, you’d use the previous state’s exemptions.
But suppose you lived in multiple states during the two years before filing for bankruptcy. In that case, you'd use the exemptions of the state you lived in for most of the 180 days before the two years immediately preceding your filing. (11 U.S.C. § 522(b)(3)(A).) Learn more about filing for bankruptcy after moving to a new state.
We've covered some of the most basic rules you'll encounter when protecting your home in bankruptcy. However, you must also meet other timing and exemption requirements to prevent losing your home. Find out more about keeping your home in Chapter 7 or Chapter 13 or consult a bankruptcy lawyer.
Did you know Nolo has made the law accessible for over fifty years? It’s true, and we want to ensure you find what you need. Below, you’ll find more articles explaining how bankruptcy works. And don’t forget that our bankruptcy homepage is the best place to start if you have other questions!
Our Editor's Picks for You |
|
More Like This |
Which Bankruptcy Chapter Should I File to Keep My House? |
What to Consider Before Filing Bankruptcy |
Preparing for Bankruptcy: What to Do With Bank Accounts, Automatic Payments, and Utility Deposits |
Helpful Bankruptcy Sites |
We wholeheartedly encourage research and learning, but online articles can't address all bankruptcy issues or the facts of your case. The best way to protect your assets in bankruptcy is by hiring a local bankruptcy lawyer.
Updated October 5, 2023
]]>In Tennessee, you'll use Tennessee's homestead exemption to protect some or all of your home's equity. Although some states allow filers to use federal bankruptcy exemptions, Tennessee is not one of them. However, you can supplement Tennessee's state exemptions with the federal nonbankruptcy exemptions.
To help you make an informed choice, we’ve listed the homestead exemption amount below. We’ve also included links to the federal and state exemption lists so you’ll have an easier time deciding whether bankruptcy will work for you.
If you’re married, keep in mind that spouses can double some exemption amounts, but not all. Find out about other filing considerations for spouses.
Tennessee Homestead Exemptions |
|
Homestead exemption amount |
$5,000 |
Can spouses who file a joint bankruptcy double the exemption? |
|
Homestead exemption law |
Tenn. Code Ann. § 26-2-301 |
Other information |
Amounts subject to change. |
Where to find other exemptions |
In Tennessee, the homestead exemption applies to real and personal property serving as your principal residence, including your home and condominium. Any interest in a family cemetery not larger than one acre, a burial plot in a cemetery, or a space in a mausoleum is also protected. See the chart above for spousal, dependent, and age-related exemption increases.
If you hold property as tenancy by entirety with your spouse: If one spouse files for bankruptcy—not both—the bankruptcy trustee might be prevented from using the property equity to pay off debts. However, this is a tricky area of law. Before filing, talk with a local bankruptcy attorney to ensure you don’t lose valuable property.
Here’s an additional benefit: If a person dies leaving a spouse or dependent children in Tennessee, the deceased’s homestead exemption can be transferred to the survivors. The survivors don't have to use that amount to pay the deceased's debts.
You can file for bankruptcy in Tennessee after living there for over 180 days. However, you must live in Tennessee much longer before using Tennessee exemptions (if that's the set you choose to use), at least 730 days before filing, to be exact. Otherwise, you’d use the previous state’s exemptions.
But suppose you lived in multiple states during the two years before filing for bankruptcy. In that case, you'd use the exemptions of the state you lived in for most of the 180 days before the two years immediately preceding your filing. (11 U.S.C. § 522(b)(3)(A).) Learn more about filing for bankruptcy after moving to a new state.
We've covered some of the most basic rules you'll encounter when protecting your home in bankruptcy. However, you must also meet other timing and exemption requirements to prevent losing your home. Find out more about keeping your home in Chapter 7 or Chapter 13 or consult a bankruptcy lawyer.
Did you know Nolo has made the law easy for over fifty years? It’s true, and we want to ensure you find what you need. Below, you’ll find more articles explaining how bankruptcy works. And don’t forget that our bankruptcy homepage is the best place to start if you have other questions!
Our Editor's Picks for You |
|
More Like This |
Which Bankruptcy Chapter Should I File to Keep My House? |
What to Consider Before Filing Bankruptcy |
Preparing for Bankruptcy: What to Do With Bank Accounts, Automatic Payments, and Utility Deposits |
Helpful Bankruptcy Sites |
We wholeheartedly encourage research and learning, but online articles can't address all bankruptcy issues or the facts of your case. The best way to protect your assets in bankruptcy is by hiring a local bankruptcy lawyer.
Updated October 4, 2023
]]>Oregon lets filers use either the federal exemption system or Oregon’s state exemption system. However, you can’t mix exemptions from both lists, so you’ll want to select the system that will protect your most important assets.
To help you make an informed choice, we’ve listed the federal exemption amount below. We’ve also included links to more complete federal and state exemption lists so you’ll have an easier time deciding which set will work best for you.
If you’re married, remember that spouses can double some exemption amounts, but not all. Find out about other filing considerations for spouses.
Federal Homestead Exemption |
Oregon Homestead Exemption |
|
Homestead exemption amount |
$27,900 |
$40,000 |
Can spouses who file a joint bankruptcy double the exemption? |
$55,800 is available to spouses who co-own property. |
$50,000 |
Homestead exemption law |
11 U.S.C. § 522(d)(1) |
Or. Rev. Stat. §§ 18.385, 13.395, 18.402, 18.428 |
Other information |
Amounts will adjust on April 1, 2025. |
Amounts change periodically. |
Compare other federal and state exemptions. |
You can file for bankruptcy in Oregon after living there for over 180 days. However, you must live in Oregon much longer before using Oregon exemptions (if that's the set you choose to use), at least 730 days before filing, to be exact. Otherwise, you’d use the previous state’s exemptions.
But suppose you lived in multiple states during the two years before filing for bankruptcy. In that case, you'd use the exemptions of the state you lived in for most of the 180 days before the two years immediately preceding your filing. (11 U.S.C. § 522(b)(3)(A).) Learn more about filing for bankruptcy after moving to a new state.
We've covered some of the most basic rules you'll encounter when protecting your home in bankruptcy. However, you'll also need to meet other timing and exemption requirements to prevent losing your home. Find out more about keeping your home in Chapter 7 or Chapter 13 or consult a bankruptcy lawyer.
Did you know Nolo has made the law easy for over fifty years? It’s true, and we want to ensure you find what you need. Below you’ll find more articles explaining how bankruptcy works. And don’t forget that our bankruptcy homepage is the best place to start if you have other questions!
Our Editor's Picks for You |
|
More Like This |
Which Bankruptcy Chapter Should I File to Keep My House? |
What to Consider Before Filing Bankruptcy |
Preparing for Bankruptcy: What to Do With Bank Accounts, Automatic Payments, and Utility Deposits |
Helpful Bankruptcy Sites |
We wholeheartedly encourage research and learning, but online articles can't address all bankruptcy issues or the facts of your case. The best way to protect your assets in bankruptcy is by hiring a local bankruptcy lawyer.
Updated October 4, 2023
]]>In this article, you’ll learn how to find Oklahoma’s current homestead exemption amount and apply it in your bankruptcy case. We also explain other requirements you must meet when filing for bankruptcy in Oklahoma.
Oklahoma's homestead exemption protects equity in your home or manufactured home if it’s your primary residence or other property covered by the homestead exemption. The homestead can be up to half an acre in a municipality or 160 acres elsewhere. (31 O.S. § 1.)
You can exempt an unlimited amount of equity in your primary residence. It's one of the most generous homestead exemptions in the country. However, if you use more than 25% of the total square footage of your property for business purposes, your exemption will be limited to $5,000. You can, however, rent your property and still claim the total exemption amount as long as you don’t live in another residence. (31 O.S. § 1.)
Example. Nelson owns two properties, a residential home he lives in with his children and a rental property he leases to tenants. Nelson can use Oklahoma's homestead exemption to protect the equity in the residential house but not the leased property.
Learn more about Oklahoma's bankruptcy exemptions.
You can search Oklahoma’s statutes online on the Oklahoma Legislature’s website. The exemption requirements will be in the statute. (31 O.S. § 1.)
Filers behind on a mortgage will have additional hurdles to meet. For instance, in Chapter 7, you must be current on your mortgage payment when you file. Otherwise, you could lose your home. In Chapter 13, you must earn enough to afford the Chapter 13 payment, which is rarely easy.
Also, you must own the property for at least 1,215 days before the bankruptcy filing. Otherwise, federal law will limit the homestead exemption amount. Find out more about your home in Chapter 7 and your home in Chapter 13.
You can file for bankruptcy in Oklahoma after living there for over 180 days. However, you must live there for at least 730 days before using the Oklahoma exemptions. Otherwise, you’d use the previous state’s exemptions.
The calculation is different if you weren’t living in one particular state two years before your bankruptcy filing. You’d use the exemptions of the state you lived in for most of the 180 days before the two years immediately preceding your filing. (11 U.S.C. § 522(b)(3)(A).)
Learn more about filing for bankruptcy after moving to a new state.
You don’t need to file a separate homestead declaration in your county recorder’s office before claiming Oklahoma’s homestead exemption in bankruptcy. The procedure involves listing your home, its value, and the applicable exemption statutes in your bankruptcy petition.
Specifically, you’ll list your property on Schedule A/B: Property and exemptions on Schedule C: The Property You Claim as Exempt.
Bankruptcy mistakes, such as improperly disclosing or exempting assets, can be costly and often occur when filing without a bankruptcy lawyer. A local bankruptcy lawyer’s knowledge and expertise will help you avoid losing your home and other valuable assets and ensure you maximize the homestead exemption.
Did you know Nolo has made the law easy for over fifty years? It’s true—and we want to ensure you find what you need. Below you’ll find more articles explaining how bankruptcy works. And don’t forget that our bankruptcy homepage is the best place to start if you have other questions!
Our Editor's Picks for You |
|
More Like This |
Which Bankruptcy Chapter Should I File to Keep My House? |
Other Articles You Might Enjoy |
Preparing for Bankruptcy: What to Do With Bank Accounts, Automatic Payments, and Utility Deposits |
Helpful Bankruptcy Sites |
We wholeheartedly encourage research and learning, but online articles can't address all bankruptcy issues or the facts of your case. The best way to protect your assets in bankruptcy is by hiring a local bankruptcy lawyer.
Updated October 3, 2023
]]>New York lets filers use either the federal exemption system or New York’s state exemption system, so you’ll have two homestead amounts to choose between. However, you can’t mix exemptions from both lists, so you’ll want to select the system that will protect your most important assets.
We've listed both exemption amounts below to help you make an informed choice. We’ve also included links to more complete federal and state exemption lists so you’ll have an easier time deciding which set will work best for you.
If you hold property as tenancy by entirety with your spouse: If one spouse files for bankruptcy, not both, the bankruptcy trustee might be prevented from using the property equity to pay off debts. However, this area is tricky. Talk with a local bankruptcy attorney about filing considerations for spouses to ensure you don’t lose valuable property.
Federal Homestead Exemption |
New York Homestead Exemptions |
|
Homestead exemption amount |
$27,900 |
|
Can spouses who file a joint bankruptcy double the exemption? |
$55,800 is available to spouses who co-own property. |
Yes if spouses co-own property. |
Homestead exemption law |
11 U.S.C. § 522(d)(1) |
NYCPLR §§ 5206 (a), (d), and (e) |
Other information |
Amounts will adjust on April 1, 2025. |
Amounts will adjust on April 1, 2024. |
Compare other federal and state exemptions. |
In New York, the homestead exemption applies to real property, including your home, condominium, or co-op. It also applies to a mobile home.
You can file for bankruptcy in New York after living there for more than 180 days. However, you must live in New York much longer before using New York exemptions, at least 730 days before filing, to be exact. Otherwise, you’d use the previous state’s exemptions.
But suppose you lived in multiple states during the two years before filing for bankruptcy. In that case, you'd use the exemptions of the state you lived in for most of the 180 days before the two-year period immediately preceding your filing. (11 U.S.C. § 522(b)(3)(A).) Learn more about filing for bankruptcy after moving to a new state.
You’ll find New York's homestead exemption in the New York state statutes at the Code Civil Practice Law and Rules § 5206 on the New York State Senate website. Also, New York’s exemption amounts adjust every three years (figures reflect the April 1, 2021 changes).
But you won’t find the most recent homestead amount in the statute. Go to New York’s Department of Financial Services website and search for “Exemption from Application to the Satisfaction of Money Judgments.” Learn about finding state statutes in Laws and Legal Research.
We've covered some of the most basic rules you'll encounter when protecting your home in bankruptcy. However, you'll also need to meet other timing and exemption requirements to prevent losing your home. Find out more about keeping your home in Chapter 7 or Chapter 13 or consult a bankruptcy lawyer.
Did you know Nolo has made the law easy for over fifty years? It’s true, and we want to ensure you find what you need. Below you’ll find more articles explaining how bankruptcy works. And don’t forget that our bankruptcy homepage is the best place to start if you have other questions!
Our Editor's Picks for You |
|
More Like This |
Which Bankruptcy Chapter Should I File to Keep My House? |
What to Consider Before Filing Bankruptcy |
Preparing for Bankruptcy: What to Do With Bank Accounts, Automatic Payments, and Utility Deposits |
Helpful Bankruptcy Sites |
We wholeheartedly encourage research and learning, but online articles can't address all bankruptcy issues or the facts of your case. The best way to protect your assets in bankruptcy is by hiring a local bankruptcy lawyer.
Updated September 22, 2023
]]>In Maine, you'll use Maine's state exemptions because the federal bankruptcy exemptions aren't available (some states allow residents to choose between the two sets). Maine's exemption amount increases if you have dependents. Contact a local bankruptcy lawyer for current amounts and to find out about other filing considerations for spouses.
Maine Homestead Exemption |
|
Homestead exemption amount |
$80,000; $160,000 for a debtor with minor dependents, or people 60 years and older, or those with a disability |
Can spouses who file a joint bankruptcy double the exemption? |
Check with a local attorney. |
Homestead exemption law |
Me. Rev. Stat. Ann. tit. 14, § 4422(1) |
Other information |
Amount changes periodically. |
The homestead exemption applies to real and personal property used as your residence in Maine, including a house, mobile home, co-op, or condominium. The exemption also includes burial plots. It also applies to property sales proceeds for up to six months.
Example 1. If you own a house worth $120,000 and have a mortgage balance of $80,000, you have $40,000 of equity in the property. If you file a Chapter 7 bankruptcy, you can use the homestead exemption to protect all equity.
Example 2. Assume your mortgage is only $20,000 and could only exempt $80,000 of your $100,000 of equity. The Chapter 7 bankruptcy trustee would likely sell your house, give you $80,000 from the proceeds for your exemption, and use any amount remaining after deducting sales costs to pay unsecured creditors. If you wanted to keep the home, you could file for Chapter 13 and pay the $20,000 nonexempt equity portion to unsecured creditors through the Chapter 13 plan.
You can file for bankruptcy in Maine after living there for more than 180 days. However, you must live in Maine much longer before using Maine exemptions, at least 730 days before filing, to be exact. Otherwise, you'd use the previous state's exemptions.
But suppose you lived in multiple states during the two years before filing for bankruptcy. In that case, you'd use the exemptions of the state you lived in for most of the 180 days before the two-year period immediately preceding your filing. (11 U.S.C. § 522(b)(3)(A).) Learn more about filing for bankruptcy after moving to a new state.
You'll also need to meet other timing and exemption requirements to prevent losing your home in bankruptcy. Find out more about keeping your home in Chapter 7 or Chapter 13 or consult a bankruptcy lawyer.
You'll find Maine's homestead exemption in the Maine Revised Statutes at Me. Rev. Stat. Ann. tit. 14, § 4422(1) on the Maine Legislature website, but the best way to protect your assets is by consulting with a local bankruptcy lawyer.
Did you know Nolo has made the law easy for over fifty years? It’s true, and we want to ensure you find what you need. Below you’ll find more articles explaining how bankruptcy works. And don’t forget that our bankruptcy homepage is the best place to start if you have other questions!
Our Editor's Picks for You |
|
More Like This |
Which Bankruptcy Chapter Should I File to Keep My House? |
What to Consider Before Filing Bankruptcy |
Preparing for Bankruptcy: What to Do With Bank Accounts, Automatic Payments, and Utility Deposits |
Helpful Bankruptcy Sites |
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Updated September 21, 2023
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Under the Illinois exemption system, homeowners can exempt up to $15,000 of equity in a home or other property covered by the homestead exemption.
For example, let’s say your house is worth $100,000. You have a $90,000 mortgage on the property, leaving $10,000 of home equity. Your equity will be fully exempt using the Illinois homestead exemption if you file for bankruptcy. Your creditors won’t be able to touch your equity, and you will keep your home (as long as you can continue making mortgage payments and paying taxes).
The homestead exemption applies to real and personal property you use as a residence, including your home, condominium, mobile home, or co-op. The homestead exemption also applies to sale proceeds from the sale of any real or personal property for up to one year from the date you sell the property.
In Illinois, the homestead exemption is automatic. You don’t have to file a homestead declaration to claim the homestead exemption in bankruptcy. However, to protect your home, you must also know how real estate is treated in Chapters 7 and 13. Consider reading Your Home in Chapter 7 and Your Home in Chapter 13.
In Illinois, married couples filing a joint bankruptcy can double the homestead exemption amount and protect up to $30,000 of home equity. Both spouses must have an ownership interest in the property to double the amount.
You can learn about the advantages and disadvantages of joint bankruptcy filings in Filing Considerations for Married Couples.
A tenancy by the entirety is often called a "super exemption," although it’s not an exemption. If you and your spouse hold your home as a tenancy in the entirety and only one spouse files for bankruptcy, you could have greater protection against creditors because, in that situation, creditors are usually unable to take it to pay debts.
However, there are limits to the protection. For instance, a tenancy by the entirety won’t protect the residence against some tax debts. Because this is one of the trickier protections, you'll want to consult a lawyer about your situation.
Illinois’s homestead exemption is in the Illinois state statutes at 735 Ill. Comp. Stat. 5/12-901 and 5/12-902 on the Illinois General Assembly website. (You can learn how to find state statutes in Laws and Legal Research.)
The statute portion of the Illinois General Assembly website might not post the most current exemption amounts. If a session of the General Assembly has ended and the amounts were updated, the current amounts will be posted in the General Assembly Public Acts area.
Did you know Nolo has made the law easy for over 50 years? It’s true, and we want to ensure you find what you need. Below you’ll find more articles explaining how bankruptcy works. And don’t forget that our bankruptcy homepage is the best place to start if you have other questions.
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We wholeheartedly encourage research and learning, but online articles can't address all bankruptcy issues or the facts of your case. The best way to protect your assets in bankruptcy is by hiring a local bankruptcy lawyer.
Updated September 20, 2023
]]>Read on for details about the homestead exemption, one of the most popular bankruptcy exemptions.
The homestead exemption protects or “exempts” equity in the home in which you reside. Almost every state has a homestead exemption you can use to protect your home’s equity from creditors in and outside of bankruptcy.
You use a homestead exemption the same way you use other bankruptcy exemptions. Bankruptcy exemptions protect some of your property from creditors. You'll list your property and the exemption protecting it in your bankruptcy petition.
Bankruptcy exemption amounts vary by state, so the amount of home equity you can protect will depend on where you live. Also, your state might allow you to use the federal exemption system. If you're given a choice, select your list carefully. You're limited to the exemptions in the list you choose.
Below you'll find links to state-specific homestead exemption articles. If your state doesn't appear in the first list, you'll find your state's homestead exemption statute and a link to the state's online statutes in the next chart
Exemptions change periodically. These 2021 figures are not being updated. You can meet with a bankruptcy attorney to learn current amounts and how exemptions apply to your situation.
Alaska $72,900 or fed. exemption§§ 09.38.010; 8 AAC 95.030(a) |
Kentucky $5,000 or fed. exemption |
Vermont $125,000 or fed. exemptiontit. § 27-101 |
Delaware $125,000 |
Louisiana $35,000§ 20.1 |
West Virginia $35,000§ 38-10-4 |
D.C. Unlimited or fed. exemption§ 15-501(1)(14) |
Mississippi $75,000§§ 85-3-1, 85-3-21 |
Most exemption statutes have requirements included in the law and, possibly, the current exemption amount. However, many states don’t post exemption increases when the amount changes.
If the homestead exemption in the statute is less than we’ve posted, don’t rely on it. A local bankruptcy attorney can give you the current homestead amount and evaluate whether you qualify to keep your home in bankruptcy.
To find other exemptions in your state and determine whether you can use the federal bankruptcy exemptions, go to Bankruptcy Exemptions by State.
A Chapter 7 trustee will sell your home and distribute the proceeds to creditors if you can't protect all the home's equity. In Chapter 13, you can pay creditors an amount equal to your nonexempt equity through the three- to five-year Chapter 13 repayment plan and keep the home.
Learn about the other requirements you'll need to meet to keep your house in bankruptcy.
All exemptions have exclusions or “fine print” that restrict use. We explain some of the rules you should be aware of below. Your local bankruptcy lawyer can explain how they might apply in your case. Also, the bankruptcy chapter you file will determine what will happen to your home if you can’t protect all of the equity. You'll find more information about these issues below.
Although it's possible to strike up an agreement with your mortgage lender to bring your overdue mortgage current in Chapter 7, the lender doesn’t have to work with you, and many won’t. To ensure you don’t lose your house in Chapter 7, you’ll want to be current on your mortgage, be able to protect all equity with a homestead exemption and continue making your payment after bankruptcy.
Homestead exemptions aren't always sufficient to protect all of a homeowner's equity. Check whether your state offers a "wildcard exemption" which will allow you to exempt any property of your choosing. The federal exemptions offer a wildcard exemption.
In many instances, you can stack the wildcard exemption on top of your homestead exemption, increasing the total protectable amount. However, some states limit a wildcard's use by precluding real estate or cash.
Federal law restricts homestead exemptions to prevent people from shielding their assets by moving to states with unlimited homestead exemptions shortly before filing for bankruptcy. You must have purchased your home at least 40 months before bankruptcy before you'll qualify for the state's homestead exemption.
However, an exception exists. If you sold your home and bought a new one with the sale proceeds in the new state, the time you owned your first home will count toward the 40-month requirement.
Suppose you can't satisfy the homestead domicile requirement. In that case, federal law caps your homestead exemption at $189,050 regardless of your state exemption amount (for cases filed between April 1, 2022, and March 31, 2025). (28 U.S.C. 522(p),(q).)
Your homestead exemption is also capped at $189,050 if you have committed bankruptcy fraud or other crimes (for cases filed between April 1, 2022, and March 31, 2025). (28 U.S.C. 522(p),(q).) Learn more about bankruptcy fraud and the consequences of bankruptcy fraud.
Did you know Nolo has made the law easy for over fifty years? It’s true—and we want to ensure you find what you need. Below you’ll find more articles explaining how bankruptcy works. And don’t forget that our bankruptcy homepage is the best place to start if you have other questions!
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We wholeheartedly encourage research and learning, but online articles can't address all bankruptcy issues or the facts of your case. The best way to protect your assets in bankruptcy is by hiring a local bankruptcy lawyer.
]]>In this article, you’ll learn how to find North Carolina’s current homestead exemption amount and apply it in your bankruptcy case. We also explain other requirements you must meet when filing for bankruptcy in North Carolina.
You can use the North Carolina homestead exemption to exempt equity in your home, condominium, or co-op if you or your dependents live on the property. You can also use it to protect a burial plot for you or your dependents. (N.C. Gen. Stat. § 1C-1601(a)(1).)
Example. Nelson owns two properties, a residential home he lives in with his children and a rental property he leases to tenants. Nelson can use North Carolina's homestead exemption to protect the equity in the residential house but not the leased property.
The North Carolina homestead amount was $35,000 when we last checked on May 26, 2021, and $60,000 for those 65 and older “…if the property was previously owned as a tenant by the entireties or as a joint tenant with rights of survivorship and the former co-owner of the property is deceased.” (N.C. Gen. Stat. § 1C-1601(a)(1).)
If you're unsure how to calculate home equity, here's what you'll do. Subtract the mortgage balance from the home’s value (the price it would sell for). The difference is the “equity.” It's the amount you could keep if you sold the home and paid off the home loan.
Example. Jem owes $125,000 on a home worth $150,000, giving her $25,000 in home equity. Jem can protect all her home equity in bankruptcy using North Carolina's $35,000 homestead exemption.
You can search North Carolina’s statutes online on the North Carolina General Assembly website. Look for N.C. Gen. Stat. § 1C-1601(a)(1)—you’ll paste it into the citation box.
The exemption requirements will be in the statute and, possibly, the current exemption amount. However, many states don’t post exemption amount increases in the statute when the exemption amount changes.
If the amount in the statute is less than we’ve posted, don’t rely on it. A local bankruptcy attorney can give you the current homestead amount and evaluate whether you qualify to keep your home in bankruptcy.
Yes. North Carolina permits married couples to double the homestead exemption if they both own the home and file a joint bankruptcy—but not if it’s one spouse’s sole property.
Filing for bankruptcy with your spouse can be tricky, especially if one spouse has significant separate property. It could be used to pay the other spouse’s debts. Learn more about important filing considerations for married couples.
Example. Andrew and Ali bought a home together shortly after marrying. Because they're both on the home's title and filed for bankruptcy together, they can double the homestead exemption.
Example. When Mari and Jorge filed for bankruptcy, they were living in a home Mari purchased before their marriage. The homestead exemption didn't qualify for doubling because Jorge had no ownership interest in the property.
No, not in North Carolina. Some states have a wildcard exemption you can stack onto the homestead exemption. However, North Carolina’s wildcard exemption isn’t separate from the homestead exemption and doesn’t help filers protect more home equity.
The wildcard exemption in North Carolina works by letting you apply any unused homestead exemption amount towards personal property up to $5,000. (N.C. Gen. Stat. § 1C-1601(a)(2)). (Amount valid as of May 26, 2021.)
When you can’t exempt all your home equity, whether you keep or lose your house will typically depend on whether you file for Chapter 7 or 13. Here are the basics.
When a Chapter 7 filer’s home has nonexempt equity, the Chapter 7 trustee assigned to the case will sell it and give the homestead exemption amount to the filer. The remaining proceeds pay sales costs, the trustee’s fee, and “unsecured debts”—bills not secured by collateral, like most credit card balances, medical bills, and personal loans.
However, suppose the sales costs would eat up all the nonexempt equity, leaving nothing for creditors. In that case, the trustee would “abandon” the home, and you’d keep it.
By contrast, the Chapter 13 trustee won’t sell the home if the homestead exemption doesn’t cover all the home’s equity. Instead, the filer must pay unsecured creditors for the nonexempt equity through the Chapter 13 plan (however, you can deduct sales costs from the plan payment—the calculation allowance ensures creditors receive the same amount in Chapters 7 and 13).
A Chapter 13 plan typically lasts three or five years. You must be able to pay the monthly mortgage payment and catch up on any missed payments, but you can spread the arrearages over the plan. Typically, Chapter 13 filers must also pay car payments when keeping a financed car and certain “priority debts” in full, such as recent income tax balances and support obligations. Other debts, like credit card balances and medical bills, often receive a fraction of what’s owed.
Learn more about debts you must pay in Chapter 13 bankruptcy.
Filers behind on a mortgage will have additional hurdles to meet. For instance, in Chapter 7, you must be current on your mortgage payment when you file. Otherwise, you could lose your home. In Chapter 13, you must earn enough to afford the Chapter 13 payment, which is rarely easy.
Learn about your home in Chapter 7 and your home in Chapter 13.
Some states allow bankruptcy filers to use federal bankruptcy exemptions instead of state exemptions. North Carolina isn't one of those states. If you reside in North Carolina, you must use the state exemptions (but you can protect more with North Carolina’s homestead exemption than the federal exemption).
Find out more about North Carolina Bankruptcy Exemptions.
You can file for bankruptcy in North Carolina after living there for over 180 days. However, you must live there for at least 730 days before using the North Carolina exemptions. Otherwise, you’d use the previous state’s exemptions.
The calculation is different if you weren’t living in one particular state two years before your bankruptcy filing. You’d use the exemptions of the state you lived in for most of the 180 days before the two years immediately preceding your filing. (11 U.S.C. § 522(b)(3)(A).)
Learn more about filing for bankruptcy after moving to a new state.
You don’t need to file a separate homestead declaration in your county recorder’s office before claiming North Carolina’s homestead exemption in bankruptcy. The procedure involves listing your home, its value, and the applicable exemption statutes in your bankruptcy petition.
Specifically, you’ll list your property on Schedule A/B: Property and exemptions on Schedule C: The Property You Claim as Exempt.
Bankruptcy mistakes, such as improperly disclosing or exempting assets, can be costly and often occur when filing without a bankruptcy lawyer. A local bankruptcy lawyer’s knowledge and expertise will help you avoid losing your home and other valuable assets and ensure you maximize the homestead exemption.
Did you know Nolo has made the law easy for over fifty years? It’s true—and we want to ensure you find what you need. Below you’ll find more articles explaining how bankruptcy works. And don’t forget that our bankruptcy homepage is the best place to start if you have other questions!
Our Editor's Picks for You |
|
More Like This |
Which Bankruptcy Chapter Should I File to Keep My House? |
Other Articles You Might Enjoy |
Preparing for Bankruptcy: What to Do With Bank Accounts, Automatic Payments, and Utility Deposits |
Helpful Bankruptcy Sites |
We wholeheartedly encourage research and learning, but online articles can't address all bankruptcy issues or the facts of your case. The best way to protect your assets in bankruptcy is by hiring a local bankruptcy lawyer.
Updated September 22, 2023
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