Protect Your Massachusetts Home In Bankruptcy
By L. Jed Berliner, Springfield Bankruptcy Attorney on Jan 31, 2007 in Massachusetts, Protecting Assets In Bankruptcy
We’re pretty lucky in Massachusetts. We have a $500,000 homestead and it applies to home equity, not overall value. Equity is value minus mortgages. Not bad. (It’s not doubled if married, however.)
You must have a valid Declaration of Homestead recorded with the Registry of Deeds. It costs $35.00, and the property description or deed reference in the homestead declaration must be accurate. Just make sure that the proper deed is referenced if your home and adjacent yards are on more than one deed. You really want to protect the house and not the yard, right?
Here’s a trap. The homestead declaration must be recorded after the last deed giving you ownership. If you own the home and then deed it to yourself and your spouse together, that new deed destroyed any former homestead and you’ll need a new one. Be careful. Best to have your attorney double-check your title.
You can protect $18,450 of equity, or $36,900 if married, without a homestead declaration but why take a chance? $35.00 for $500,000 protection. It just makes sense.
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