Our experience is that while there are rules and laws in place to deal with bankruptcy, Federal Bankruptcy Judges often interpret the law differently or do not apply laws on a consistent basis. They appear to err on the side of the creditor rather than the consumers. States may “opt-out” of the Federal Bankruptcy general protection and the new Federal Bankruptcy Act of 2005 makes it even more complex. Only the main residence is generally protected, second homes, vacation homes are not protected, residency is also an issue if you live part of the time in multiple states. Federal tax liens are not protected by state homestead exemptions. In states where you have unlimited homestead be careful not to fall in the trap of using the state’s unlimited exemption as your defense. The states would be committing a crime if they aided and abetted a criminal intent. Under the Uniform Fraudulent Transfer Act you would be committing a crime, see Section 19.40.041
…(a) a transfer made or obligation incurred by a debtor is fraudulent as to a creditor whether the creditor’s claim arose before or after the transfer was made or the obligation was incurred, if the debtor made the transfer or incurred the obligation: (1) with actual intent to hinder, delay, or defraud any creditor of the debtor.”…
Homesteading is useless in most situations for example it does not apply to Medicaid, Probate, or the Estate Tax. ALL assets titled in your name, real estate, cash, CD’s,…is subject to MEDICAID CONFISCATION for the purpose of “Medicaid” or “Medicaid Estate Recovery” (Federal Medicaid Act 42 USC ss 1396 et seq. and successor legislation(s) and other federal and state “enabling acts” and their successor acts), immediately upon entering a nursing home, or the filing of an application for Medicaid eligibility.
(Click here to learn more about the pro’s and con’s of Homestead Protection)
DISCLAIMER: This statement is required by IRS regulations (31 CFR Part 10, §10.35): Circular 230 disclaimer: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.
DISCLAIMER 2: Laws are dynamic. You need to check with your attorney in your state, before relying on the chart below. We have attempted to provide you with information we believe to be reliable but you should not rely on our information for your state because laws are dynamic and can be changed by any judge using his discretion by setting new precedence or even striking down legislative intent.
| Jurisdiction | Homestead Exemption and Statute |
|---|---|
| Federal Bankruptcy Exemptions | $20,200 — 11 U.S.C. § 522(d)(1) |
| Alabama Homestead | $5,000 / $10,000 — Ala. Code § 6-10-2, 27-14-29 |
| Alaska Homestead | $67,500 — Alaska Stat. § 09.38.010 |
| Arizona Homestead | $150,000 — Ariz. Rev. Stat. § 33-1101A |
| Arkansas Homestead | Unlimited for married and head-of-household residents (but once homestead attaches, not destroyed by death, divorce, or dependents’ emancipation) — Ark. Const. art. 4 |
| California Homestead | $50,000 single / $75,000 head of household / $150,000 over 65 or disabled. — Cal. Civ. Proc. Code § 704.730 |
| Colorado Homestead | $45,000 — Colo. Rev. Stat. § 38-41-201 |
| Connecticut Homestead | $75,000 — Conn. Gen. Stat. § 52-352b(t) |
| Delaware Homestead | $50,000 — 10 Del Code Ann. § 4914(c)(1) |
| District of Columbia Homestead | Unlimited — D.C. Code § 15-501(a)(14) |
| Florida Homestead | Unlimited for 160 acres rural or 1/2 acre urban. — Fla. Stat. Ann. §§ 222.01, 222.02, Fla. Const. Art. X, § 4. |
| Georgia Homestead | $10,000 single / $20,000 married — Georgia Code Ann. § 44-13-100(a)(1). Note: S.B. 133, which would raise the exemption to $50,000 / $100,000, was reported favorably by the Senate Judiciary Committee on 3/1/07 |
| Hawaii Homestead | $20,000 / $30,000 for head of household or over 65. — Hawaii Rev. Stat. § 651-92(a) |
| Idaho Homestead | $100,000 — Idaho Code § 50-1003 |
| Illinois Homestead | $15,000 — I.L.C.S. §§ 5/12-901; 5/12-906 |
| Indiana Homestead | $15,000 — Ind. Code Ann. § 34-55-10-2(b)(1) |
| Iowa Homestead | Unlimited for 40 acres rural, 1/2 acre urban. — Iowa Code Ann. § 561.16 |
| Kansas Homestead | Unlimited for 160 acres rural or 1 acre urban. — Kan. Stat. Ann. § 60-2301 |
| Kentucky Homestead | $5,000 — Ky. Rev. Stat. Ann. § 427.060 |
| Louisiana Homestead | $25,000 — La. Rev. Stat. Ann. § 20:1. La. Const. Art. 12:9 |
| Maine Homestead | $35,000 / $70,000 if minor dependents. — 14 Me. Rev. Stat. Ann. § 4422(1) |
| Maryland Homestead | None |
| Massachusetts Homestead | $500,000 and $500,000 for each age 62+ or disabled person. — Mass. Gen. L. Ch. 188 §§ 1, 1A |
| Michigan Homestead | $30,000 / $45,000 if 65+ or disabled. — Mich. Comp. Laws Ann. § 600.5451(n) |
| Minnesota Homestead | Up to 160 acres. $750,000 rural; $300,000 urban. Minn. Rev. Stat. Ann. § 510.01. |
| Mississippi Homestead | $75,000 for 160 acres. — Miss. Code Ann. § 85-3-21 |
| Missouri Homestead | $15,000. — Mo. Ann. Stat. § 513.475 |
| Montana Homestead | $100,000 — Mont. Code Ann. § 70-32-104 |
| Nebraska Homestead | $12,500, limited to head of household. — Neb. Rev. Stat. §§ 40-101 to -108 |
| Nevada Homestead | $350,000 — Nev. Rev. Stat. § 21.090(1)(l) |
| New Hampshire Homestead | $100,000 — N.H. Code Ann. § 480:1 |
| New Jersey Homestead | None |
| New Mexico Homestead | $60,000 — N.M. Stat. Ann. § 42-10-9 |
| New York Homestead | $50,000 — N.Y. Civ. Prac. L. and R. § 5206(a) |
| North Carolina Homestead | $18,500 / $37,500 married — N.C. Gen. Stat. § 1C-1601(a)(1) |
| North Dakota Homestead | $80,000 — N.D. Cent. Code §§ 47-18-01, 28-22-02(7) |
| Ohio Homestead | $5,000 — Ohio Rev. Code Ann. § 2329.66(A)(1) |
| Oklahoma Homestead | Unlimited for 160 acres rural, 1 acre urban. — 31 Okla. St. Ann. § 2 |
| Oregon Homestead | $39,600 — Or. Rev. Stat § 18.395 |
| Pennsylvania Homestead | None |
| Rhode Island Homestead | $300,000 — R.I. Gen. Laws § 9-26-4.1 |
| South Carolina Homestead | $50,000 per owner; $100,000 maximum (adjusted for inflation each July starting July 2007) S.C. Code Ann. § 15-41-30(1 |
| South Dakota Homestead | Unlimited for 160 acres rural, 1 acre urban — S.D. Cod. Laws § 43-45-3 |
| Tennessee Homestead | $7,500 unmarried / $12,500 unmarried 62+ / $20,000 married and one spouse 62+ / $25,000 married and both spouses 62+. — Tenn. Code Ann. § 26-2-301 |
| Texas Homestead | Unlimited for 100 acres rural (single) / 200 acres rural (family), 1 acre urban. — Tex. Const. Art. XVI, §§ 50, 51; Tex. Prop. Code §§ 41.001 to 002 |
| Utah Homestead | $20,000 / $40,000 married — Utah Code Ann. § 78-23-3 |
| Vermont Homestead | $75,000 — 12 Vt. Stat. Ann. § 2740(19)(D) |
| Virginia Homestead | $5,000 — Va. Code Ann. § 34-4 |
| Washington Homestead | $125,000 — Wash. Rev. Code § 6.13.030 |
| West Virginia Homestead | $25,000 — W. Va. Code § 38-10-4(a) |
| Wisconsin Homestead | $40,000 — Wisc. Stat. § 815.20 |
| Wyoming Homestead | $20,000 — Wy. Stat. Ann. § 1-20-101 |