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Will selling my homestead in Montana affect my Texas judgment?

Will selling my homestead in Montana affect my Texas judgment?

Q: Does the Texas homestead exemption expire?

The Texas homestead exemption does not expire as long as you continue to occupy the property as your primary residence. However, if you move or change the use of the property, you may need to reapply for the exemption. It’s essential to keep your information updated with the local appraisal district to maintain the exemption.

Full question:

I have a homestead in Montana and a judgement for $600,000 in Texas. I would like to sell my Homestead - Home, and if I do so, will the Judgement be exempt against the homestead proceeds?

Category: Real Property
Subcategory: Homestead
Date: 04/07/2025
State: Montana

Answer:

No, the homestead exemption applies only to the property itself. Once you sell your homestead and convert it to cash, the protection from the judgment no longer applies. In Montana, the homestead is generally exempt from execution or forced sale, except in specific circumstances. These circumstances include judgments related to debts secured by construction or vendor liens, mortgages on the property, or mortgages recorded before the homestead declaration (Mont. Code Ann. § 70-32-201, § 70-32-202).

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

In what states is your house protected from creditors?

Homestead protections vary by state. Generally, states like Florida, Texas, and California offer strong homestead exemptions that protect a primary residence from creditor claims. In these states, the homestead is shielded from forced sale to satisfy most debts. However, there are exceptions, such as for mortgages or tax liens. Always check specific state laws for details on the extent of protection and any limitations.

What is the new homestead exemption law in Texas?

The new homestead exemption law in Texas allows homeowners to exempt a portion of their home's value from property taxes. As of 2022, the general homestead exemption increased to $40,000 for school district taxes. Additionally, there are exemptions for those who are elderly or disabled. It’s important to apply for these exemptions through your local appraisal district to benefit from the reduced tax burden.

Does homestead protect against lawsuit in Texas?

In Texas, the homestead exemption protects your primary residence from most creditors and lawsuits. This means that if you face a lawsuit, your homestead cannot be forcibly sold to satisfy most judgments. However, there are exceptions, such as for debts related to mortgages, property taxes, or home equity loans. Always consult a legal professional for specific situations.

Does the Texas homestead exemption expire?

How long are the proceeds from the sale of homestead property exempt in Texas?

In Texas, proceeds from the sale of a homestead are exempt from creditors for up to six months after the sale. This exemption allows homeowners time to reinvest the proceeds into another homestead or use them without immediate risk from creditors. After six months, the protection may no longer apply, so it's important to act within that timeframe.

What is the exempt property statute in Texas?

The exempt property statute in Texas is outlined in the Texas Property Code, which provides protections for certain types of property, including homesteads. Under Texas law, a homestead is generally exempt from forced sale for most debts, offering significant protection to homeowners. Specific provisions detail the types of debts that are exempt and any limitations on the exemption.