I am in Louisiana, which has a $25K cap for the homestead exemption. I own an unimproved homesite that I believe would qualify for the cap, but the homesite had a value of at least $35K (that was the amount that I had purchased it for, which will have been over 2 years before Chapter 7 would be done.)
I would think that the cap works by shielding that amount from the creditors, such that if there was less than $25K in equity, a home could not be taken, but if there would be more than the $25K, then the trustee would need to sell the property and give me the first $25K before any creditors. Does that sound accurate?
I would think that the cap works by shielding that amount from the creditors, such that if there was less than $25K in equity, a home could not be taken, but if there would be more than the $25K, then the trustee would need to sell the property and give me the first $25K before any creditors. Does that sound accurate?