GLOSSARY · TAX & ESTATE
Homestead exemption
A state law that protects some or all of the equity in a primary residence from most creditors. The protected amount ranges from unlimited value in a few states to very little in others, and some states require a recorded declaration. Federal bankruptcy law caps the exemption for a home bought shortly before filing.
Also called: homestead protection, homestead declaration
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CHAPTER · WEALTH PROTECTION FUNDAMENTALS · FOUNDATIONSHow Asset Protection WorksRELATED TERMS
SOURCES
- 11 U.S.C. § 522, Exemptions. United States Code.