Harriet owns a home in Cheyenne and claims Wyoming's homestead exemption. She later defaults on a personal credit card debt of $35,000, and the credit card company obtains a judgment against her. Her home equity is currently $22,000. What is the maximum amount the creditor can force Harriet to pay from her home equity under Wyoming's homestead exemption law?
Correct Answer
C) $2,000, because only the equity exceeding the $20,000 homestead exemption is available to unsecured creditors.
Wyoming's homestead exemption protects up to $20,000 of equity in a primary residence from unsecured creditors. Harriet's home equity is $22,000. The first $20,000 is exempt, leaving $2,000 of equity exposed to the unsecured credit card judgment. The creditor can only reach the $2,000 above the exemption threshold.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Tenancy in common is a form of co-ownership in which two or more persons hold separate, undivided interests in property without the right of survivorship. Each owner can hold unequal shares and can independently transfer their interest.
A freehold estate conveys ownership rights, while a leasehold estate grants the right to possess and use property for a specific period without ownership.
Riparian rights concern properties bordering flowing bodies of water (rivers, streams), while littoral rights concern properties bordering non-flowing bodies of water (lakes, oceans).
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