MN Homestead Exemption For Married Couple

[pmert]

Under the MN homestead exemption, I believe a $200,000 home exemption is allowed under bankruptcy whether a single or joint bankruptcy? If filing a non-joint bankruptcy, is my spouse allowed a half interest in the total equity of our house along with my $200,000 exemption, assuming the house is in both names and the debt, from a lawsuit, is charged only to me?

In other words, would my spouse and I effectively have a $200,000 exemption (me) along with her 1/2 interest in the total equity of the house, which could be greater than $200,000?

Also, could we be foreced to sell the house If my spouse did not want to if there is a substanial judgement against me? I would think being MN is a community property state, my spouse should be entitled to 1/2 ownership in all home equity and should have a right to live in the house as long as the mortgage is current?

If I elected to not file bankruptcy and a judgement is entered against me only, could a creditor force the sale of a primary residence to satisfy the judgement if my spouse did not want to sell?

Thanks!!

 

[Ladynred]

First, MN is NOT a community property state.

If you file alone, then the 200K homestead exemption applies, but your wife's 'half' will not offset or reduce the equity if it's more than the exemption, the Trustee can take the house even if it's joint.

, could we be foreced to sell the house If my spouse did not want to if there is a substanial judgement against me?

It's possible, it depends on how substantial the judgment is vs. the value of the house. The judgment creditor could forclose on a lien, but they would still have to give you the 200K exemption before they could get what's left - so they may not go as far as to force the sale of the property.