{"id":376093,"date":"2016-03-31T21:36:32","date_gmt":"2016-04-01T02:36:32","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/state\/property-and-real-estate-laws\/details-on-state-homestead-protections.html"},"modified":"2016-06-20T19:51:43","modified_gmt":"2016-06-21T00:51:43","slug":"details-on-state-homestead-protections","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/state\/property-and-real-estate-laws\/details-on-state-homestead-protections.html","title":{"rendered":"Details on State Homestead Protections"},"content":{"rendered":"\n
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Details on State Homestead Protections<\/h1>\n
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Created by FindLaw’s team<\/a> of legal writers and editors<\/i><\/p>\n\n | Last updated\n

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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

What are Homestead Protection Laws?<\/h2>\n

Nearly every state has a homestead<\/a> protection law, designed to protect individual property owners — including but not limited to homeowners — from losing their primary residence during hard times. Small property owners who are unable to meet the demands of their creditors still need a place to live even if they have declared bankruptcy. Homestead laws allow an individual to register a portion of his or her real and personal property as a "homestead," thereby making that portion of the individual’s estate off-limits to most creditors. The idea behind these homestead laws is the preservation of the family farm, home, or other assets in the face of severe economic conditions.<\/p>\n

Property owners typically invoke homestead laws when they file for bankruptcy, often based on the amount of equity they have in the property. Different states have different criteria, but usually base the exemption amount on acreage, equity amount, or both.<\/p>\n

For example, suppose an Illinois homeowner has lost her job and can no longer afford her mortgage payments. She eventually files for bankruptcy and claims the maximum $15,000 exemption on her equity. Although she owes money to her creditors, the exemption prohibits them from seizing her home. However, she may be forced to sell her home if she owes past due Illinois state taxes.<\/p>\n

See FindLaw’s Bankruptcy<\/a> section for more articles related to homestead laws, including Bankruptcy Exemptions: Chapter 7<\/a> and Debt Discharge and Property<\/a>.<\/p>\n

State Homestead Laws at a Glance<\/h2>\n

While similar in function, there are plenty of differences among the various state homestead laws. A few states offer exemptions of more than $100,000, while some state exemptions are as low as $5,000. Most states offer a generous exemption limit for agricultural land, but these limits also vary quite a bit.<\/p>\n

Also, state laws tend to differ in the types of property that may be exempted. For instance, Arizona law allows a $6,000 exemption for household furniture and appliances, while Delaware allows a $15,000 exemption for "tools of trade" (such as a building contractor’s pickup truck and power tools).<\/p>\n

What May be Protected Under Homestead Laws?<\/h2>\n

As noted above, state homestead laws are all fairly unique. In addition to real property, such as a house or a farm, homestead laws may exempt the following (check your state law for specifics):<\/p>\n