If you've recently bought a house, you may have paid for a Homestead Declaration to be filed along with the deed. Ever wondered about that?
Massachusetts is one of the few states to offer homeowners a special protection from creditors. Called the Massachusetts Homestead Protection Law, it automatically protects up to $125,000 of equity for your primary residence. By filing a special form with the Registry of Deeds, you will be protected up to $500,000.
Although there are exceptions - mostly government agencies and your mortgage holder - most creditors can not force you to sell your home to satisfy a debt or if the debt is in excess of the $500,000 protection and the creditor can force you to file a Chapter 7 Bankruptcy, you would be able to keep a much larger portion of the proceeds of the sale.
If you are a homeowner dealing with a financial hardship, please learn more about this special law. Even if you are not in the midst of a difficult financial situation, be sure that you or your attorney has filed the Declaration of Homestead. You can find out by looking on your county's registry of deeds website (google your county and registry of deeds). From there you would put in the address of your home and look through the documents until you find the Declaration of Homestead. Call if you need help with this. It's well worth your time.
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