Montana Bankruptcy: The Homestead Exemption
Can creditors take your MT home?
Montana Homestead Exemption in Bankruptcy
Filing bankruptcy in Montana but concerned about losing your home? Montana bankruptcy laws currently allow debtors to protect up to $250,000 of equity in a home through the bankruptcy process. Home equity is calculated by subtracting the amount of any mortgage from the appraised value of your home. If your home equity is $250,000 or less, the bankruptcy trustee cannot sell your home if you file for chapter 7. BE AWARE: The Montana homestead exemption is similar to Massachusetts in that it must be recorded before it becomes effective. If you have questions, consult a bankruptcy attorney.
It is important to keep in mind that exempting home equity does not forgive the obligation to pay the mortgage. Even if your home is entirely exempt, the bank can still foreclose if you fall behind on mortgage payments.
RECENTLY MOVED? A recent move may impact which state’s exemption laws apply to your bankruptcy case.
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