Fact Pattern 28-4B
Mary's home is in a state that has a $30,000 homestead exemption.Mary de?faults on a $60,000 debt that she owes to Nina.Mary's home is sold at auc?tion for $80,000.
-Refer to Fact Pattern 28-4B.If Nina recovers less than she is owed,she can realize the difference from
A)any property that Mary owns.
B)only exempt property that Mary owns.
C)only nonexempt property that Mary owns.
D)property that any other member of Mary's family owns.

Question

Fact Pattern 28-4B 
Mary's home is in a state that has a $30,000 homestead exemption.Mary de?faults on a $60,000 debt that she owes to Nina.Mary's home is sold at auc?tion for $80,000.
-Refer to Fact Pattern 28-4B.If Nina recovers less than she is owed,she can realize the difference from
A)any property that Mary owns.
B)only exempt property that Mary owns.
C)only nonexempt property that Mary owns.
D)property that any other member of Mary's family owns.

Quizplus · Accepted Answer

The homestead exemption only applies to Mary's primary residence and does not protect nonexempt property. Therefore, if Nina recovers less than she is owed, she can only realize the difference from nonexempt property that Mary owns. Mary's exempt homestead is not available to pay off her debt. The debt is also not the responsibility of any other member of Mary's family.