Many people are concerned that they could loose their home in bankruptcy. The key is that you need to be able to protect your equity. In Massachusetts we have a very strong Homestead Act:
Homestead – protect your home from bankruptcy proceedings:
THERE ARE 2 TYPES:
- Regular Homestead (M.G.L. c. 188 s. 1) Available to everyone but protects only up to $500,000.00 equity per family. Only 1 person can file. If the property is jointly held by husband and wife.
- Elderly and Disabled Person’s Homestead (M.G.L. c. 188 s. 1A) For persons 62 years of age or older and statutorily disabled persons. Protects up to $500,000.00 equity per person.
- Must be your principal residence.
- Must file Homestead Declaration with Registry of Deeds if a home, with City/Town Clerk if mobile home.
WHAT IT PROTECTS:
Protects Homestead against attachment, levy on execution, and sale for debts accrued after filing of Homestead. May offer valuable protection should you file bankruptcy.