{"id":376843,"date":"2016-03-31T21:37:03","date_gmt":"2016-04-01T02:37:03","guid":{"rendered":"https:\/\/ability-fl-prod.internetbrands.com\/ability-law\/state\/vermont-law\/vermont-homestead-laws.html"},"modified":"2026-09-29T10:26:45","modified_gmt":"2026-09-29T15:26:45","slug":"vermont-homestead-laws","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/state\/vermont-law\/vermont-homestead-laws.html","title":{"rendered":"Vermont Homestead Laws"},"content":{"rendered":"\n
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Vermont Homestead Laws<\/h1>\n\n
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\n By Christie Nicholson, J.D.<\/a> | Legally reviewed by Catherine Hodder, Esq.<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\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\n\n

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Key Takeaways<\/h2>\n

Vermont<\/span> homestead law protects the equity in a debtor\u2019s primary residence<\/span> from creditors during bankruptcy proceedings. In Vermont<\/span>, homeowners can safeguard up to $125,000 of home equity<\/a> under state law<\/span>, which is significantly higher than the federal limit. This protection applies to various property types, including single-family homes, condominiums, mobile homes<\/span>, and trailers.<\/p>\n\n <\/div>\n <\/div>\n<\/div>\n\n

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Keeping your home during bankruptcy is about more than just the equity you have in your real property<\/span>. It\u2019s about the time you’ve taken to make the house your own and the memories you and your family have made there. If you file bankruptcy<\/span><\/a> in Vermont<\/span>, there\u2019s a good chance you\u2019ll be able to keep your home. Vermont<\/span>\u2019s bankruptcy laws<\/span><\/a> offer a very generous homestead exemption<\/span>. As long as you have less than $125,000 of equity in your house, you should be able to keep it.<\/p>\n

This article explains how the homestead exemption<\/span> works in bankruptcy, examines the Vermont<\/span> homestead exemption<\/span>, and shows how it can protect you during the bankruptcy process<\/span><\/a>. If you\u2019re thinking about filing a Chapter 7 or a Chapter 13 <\/span>bankruptcy<\/span> case<\/span>, consider speaking with a Vermont<\/span> bankruptcy attorney<\/span><\/a>. In addition to ensuring that you take advantage of all Vermont<\/span> bankruptcy exemptions<\/span>, they\u2019ll help you every step of the way through your bankruptcy proceedings.<\/p>\n

Types of Bankruptcy in Vermont<\/span><\/h2>\n

For private citizens, two main\u00a0types of bankruptcy<\/a>\u00a0are\u00a0available: Chapter 7 and Chapter 13. You must meet the eligibility<\/span> requirements for the bankruptcy court<\/span> to accept your petition. These requirements are the same regardless of which state you live in.<\/p>\n

A Chapter 7 bankruptcy<\/span><\/a> (liquidation<\/span> bankruptcy) is ideal for people who want to eliminate their debt and start over. In this type of case, the trustee identifies any\u00a0dischargeable debts<\/span>. You won\u2019t have to repay them once your bankruptcy case<\/span> is complete.<\/p>\n

To qualify for Chapter 7 bankruptcy<\/span>, you must pass the \u201cmeans test<\/span><\/a>.\u201d This is based on an earnings threshold set to your state\u2019s median household income. The median incomes<\/span> in Vermont<\/span><\/a> for 2026 are as follows:<\/p>\n