Reply #53: Homestead exemption protects home seizure by creditors.

[PVK]

The homestead exemption was enacted by many states to protect the family home against being sold by creditors. State laws differ, but all essentially set a monetary amount that a family will retain after the home is sold to repay debt. Naturally if the debt is less than the homestead exemption the creditor probably can't force the sale of the home. Most states limit this action to unsecured creditors; secured creditors, like mortgage holders, still have rights to the property as provided for by law. In some states the homestead must be filed with the county. Elsewhere it is an automatic exemption. Every few years most legislatures raise the homestead exemption amount to reflect current economic conditions.