Fact Pattern 20-1
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 20-1.Nina may recover

Question

Quizplus · Accepted Answer

Since Mary's home is in a state with a $30,000 homestead exemption, that amount of the sale proceeds would be protected from creditor claims. Therefore, Mary's debt to Nina could be satisfied up to a maximum of $50,000 ($80,000 sale price minus $30,000 homestead exemption).

Fact Pattern 20-1 Mary's Home Is in a State That Has a $30,000