Homestead Declaration Sweet Homestead Declaration
October 1, 2006
Very often, a person’s home is their most valuable asset, and they take many steps to protect their investment. These steps include securing homeowner’s insurance and spending countless hours and dollars maintaining the home. Unfortunately, many of these same people are unaware of a very inexpensive, yet very powerful, way to protect the equity in their home, which is the homestead declaration.
A homestead declaration declares the primary residence, whether a house or condominium, to be the homestead of the person declaring homestead rights. The homestead declaration may protect up to $500,000 of the equity in the home from executions of judgments by creditors. In this context, a judgment is a decision of a court with respect to the rights and claims of the debtor (the person owing money) and the creditor (the person money is owed to) that establishes an amount owed by the debtor. An execution is the legal process of enforcing that judgment, usually by selling the property of the debtor.
Homestead protection is not automatically granted to the owner of a primary residence; however,…
You may read more at the link below.
by: Gina M. Barry, Esquire