Idaho Bankruptcy Update-Homesteads and COVID-19
April 6, 2020
The Idaho exemptions have recently changed significantly in favor of borrowers. An exemption is an item of value that is protected from a creditor’s reach. Even if a person is sued and a judgment is entered against the borrower, a creditor is still barred from taking these items.
One of the biggest changes is to Idaho’s homestead exemption. Idaho Code Section 55-1001 allows an Idaho resident to exempt $175,000 of equity in their home. How does this work?
If your home is worth: $400,000
And you owe (mortgage): ($225,000)
You can protect the difference: $175,000