How bankruptcy attorneys in Knoxville, TN save your home
April 8, 2021at7:00 AM
Filing for bankruptcy is stressful enough without creditors coming for your home. However, there are solutions. Learning about homestead exemptions is essential to self-preservation, and make no mistake about it: a qualified bankruptcy attorney in Knoxville, TN is your best resource.
At DZ Law, we’ve been providing Knoxville with premier bankruptcy counsel and representation for years. Unlike other firms, we’ve embraced technology. It’s optimized our efficiency and enabled us to give our clients’ unique circumstances the attention and time they deserve.
Here’s why you need a bankruptcy lawyer in Knoxville, TN for homestead exemptions.
What is a homestead exemption?
Homestead exemptions are legal provisions protecting homes from certain creditors after bankruptcy or the death of a homeowner’s spouse. Homestead exemptions provide property tax relief. This is calculated on a graduated scale which affords homes with lower assessed values the highest benefits.
When considering homestead exemption, consulting with a bankruptcy attorney in Knoxville, TN is the best way to understand the ins and outs of this nuanced legal shield. It varies from state to state. In some states, it’s automatically provided; in others, you have to apply.
Eligibility can depend on income level, disability, property value, age, and veteran status. It’s different in every state, so consulting with a bankruptcy lawyer in Knoxville, TN is the surest way to know if you qualify.
How homestead exemptions work
Homestead exemptions prevent the forced sale of your primary residence. They provide both physical and financial shelter during such tumultuous times. However, they don’t stop foreclosures if the homeowners have defaulted on their mortgage.
Also, the scope of protection varies from state to state. Consulting with a bankruptcy attorney in Knoxville, TN is important because there’s truly no better way to understand the full extent of your protection.
For example, sometimes there are debt and acreage limits. Furthermore, limits apply to the equity in the home and not its value. Essentially, it’s the value of your property minus the balance of the mortgage and other claims on it.
If the equity is lower than the limit, you can’t be forced to sell. If the equity outstrips the limit, creditors can sometimes force the sale. It’s also important to remember such bankruptcy protection only protects you against unsecured creditors.
To truly understand the benefits and protection available, hiring a bankruptcy lawyer in Knoxville, TN is imperative. Top-tier firms like DZ Law will ensure you get the protection you need to weather the storm.
Tennessee’s homestead exemption
When considering homestead exemption in Tennessee specifically, there are several things to be aware of.
Firstly, the elderly or disabled earning less than $30,700 annually can be eligible for up to $29,000 in relief. Also, disabled veterans and surviving spouses are eligible for an exemption on the first $175,000 of their property’s market value.
However, for those who don’t fall into these categories, there’s still help. Homeowners can exempt up to $5,000 of their property, while joint owners can claim up to $7,500.
To truly understand the nuances and maximize your exemption, it’s important to hire a bankruptcy attorney in Knoxville, TN.
Contact us now for a consultation!
If you recently filed for bankruptcy and are interested in applying for a homestead exemption, there’s no better resource than a bankruptcy attorney in Knoxville, TN. It takes years of experience to truly understand how to maximize exemptions, and we pride ourselves on prioritizing the well-being of each client through tailored solutions.
Contact us now for a consultation! This is about more than money; it’s about asylum.