Exemptions for real property
While a Chapter 7 bankruptcy is a “no asset” case, people having an interest in real estate other than their personal residence (time shares and undeveloped lots) need not necessarily worry about losing such property. Massachusetts law allows an exemption for the value of the equity held in the debtor’s personal residence up to $500,000. People not owning their residence benefit from more liberal federal law exemptions which actually allow up to $20,200.00 worth of real estate to be exempted. An appraisal or other statement of value is usually filed along with the bankruptcy petition in order to verify the value of the real estate. Consult with a qualified bankruptcy practitioner in your jurisdiction before attempting to exempt real property in a bankruptcy filing, as the state laws on exempting such properties vary considerably from one state to another.
