|
Tax appraisals and the designation of homes are regulated by the Indiana Homestead Exemption Act.
The ramifications of these two separate procedures may have a great
impact if filing bankruptcy under Chapter 7 in Indiana. As provided by Indiana homestead exemption laws,
debtors in bankruptcy may claim the statute up to but not more than
$10,000 fair market value of equity owned.
The tax appraisal may be used either for or against debtors. If the
tax appraisal is more than 10% in error, on a $100,000 mortgage, the
entire exemption may be lost. If a debt owns multiple lots, the election
of covered property may be contested unless a pre existing election is
filed with the county clerk. The clerk provides Indiana homestead exemption forms
for designating property.
|
