What is a homestead exemption?

[dasherkin]

I see in michigan where im from we have a homestead exemption of up to 34,450... my home loan is for 21000 heloc worth 18000 homes around my area have been seeling for less then 15000 but zillow.com says it's worth 56k (lie) what would the homestead exemption mean for me if i file bankruptcy

[scorpion35]

I see in michigan where im from we have a homestead exemption of up to 34,450... my home loan is for 21000 heloc worth 18000 homes around my area have been seeling for less then 15000 but zillow.com says it's worth 56k (lie) what would the homestead exemption mean for me if i file bankruptcy

i think it means u can use it to exempt up to $34450 worth of equity in your house if any

[tcreegan]

Hi again dasherkin,

Don't go by the value on zillow, lots of folks find it terribly inaccurate. Use what nearby homes the same size and condition as yours have sold for.

The exemption means that you can have 34,450 of equity in the house that you don't have to give up in the BK. A rough estimate of equity is the home value minus the loan balance. Given what has sold in your neighborhood, with your 1st and 2nd, it looks like you would have no equity, so you don't need the homestead exemption.

Tom in Colo