A common perception about the general public and among attorneys alike is that you can keep certain properties through bankruptcy. The most important property in question is usually the primary residence of the debtor(s). This is possible because a homestead exemption allows a debtor to keep the home in spite of the fact that there may be some equity in the home (and certainly, if no equity exists, there is no need to claim a homestead). So, the common understanding (now a misunderstanding) is that once the equity in the home does not exceed the homestead exemption amount, then the property is yours to keep. No longer ! (more…)