If you are filing for Bankruptcy in the New Bedford, Massachusetts, South Shore, Massachusetts or Bristol County Massachusetts area, this may be an important question that you have. The Homestead Exemption is a legal protection for the equity in your home. The equity in your home is the dollar amount as measured by the value of your home, less any and all total payoffs on mortgages, real estate tax liens, municipal liens and judgments. For a simple example, if your home is valued at $250,000.00, and you have a mortgage payoff amount of $150,000.00, you would have $100,000.00 in equity in your home. This equity is something that can be protected by the Massachusetts Homestead, also known as a Declaration of Homestead.
In Massachusetts, Chapter 395 of the Acts of 2010, an Act Relative to the Estate of Homestead, revises and replaces the provisions of the previously existing Massachusetts homestead protection law, General Laws Chapter 188. This revision allows for the automatic protection of $125,000.00. If you actually file a Declaration of Homestead, you may be eligible to claim up to $500,000.00 in home equity protections. Additionally, you can now file a joint-married Declaration of Homestead.
Why is this important?
The Declaration of Homestead can protect the equity in your home from creditors. Specifically, with regard to any type of personal bankruptcy case, a careful application of the Homestead Exemption can not only protect your home from creditors and safeguard your house during a bankruptcy case, but it can also be utilized to remove judgment liens that may have been placed on your home as a result of an unpaid judgment.
As such, the Massachusetts Homestead Exemption is an important legal protection afforded to you to guard your home from creditors.
Please contact the bankruptcy lawyers at The Law Office of Bardsley and Gray at (508) 985-0054 for a free consultation!