Federal and state laws maintain that certain property is exempt from creditors. Therefore, regardless of the amount of money you owe, this property cannot be seized by creditors. In certain states, exempt property is only worth a few thousand dollars, while in others, you can keep property worth millions. The reasoning behind this law is that if people lose their home, car, and other valuable pieces of property, they would become a burden on society, which would then be forced to support them. Allowing an individual the right to retain some of their property allows them the chance to get a clean start.
If you are interested in protecting your house, vehicle and other assets, fill out the free case review form on the right. Our asset protection lawyers will examine your information to determine how an asset protection plan can help you.
A homestead exemption lets you keep your house or a certain part of the equity in your house. Nearly every state offers some form of homestead exemption; however, most states only allow this exemption up to a certain and often limited amount. Certain states, including Texas and Florida, offer an unlimited or nearly unlimited homestead exemption. Individuals in these states are allowed the opportunity to protect millions in their homes. Still, homestead protection has its downfalls. For instance, homestead exemptions only apply to an individual’s primary residence, not vacation property. Additionally, it does not protect against state or federal tax liabilities. Lastly, if the debtor’s estate is sold or passed to beneficiaries, the creditors can seize the money.
Homestead exemptions vary between states in regard to the type of property that is protected. In certain states, only single-family homes are protected, while other states allow protection for apartments, condos, and mobile homes. Additionally, certain states restrict the physical size of the homestead.
Because state laws regarding homestead exemptions vary between states, homeowners should speak with an asset protection lawyer to find out how they can safeguard their property. To speak with an asset protection attorney in your area, complete the free case review form on the right.