Homestead Exemption Limits

• You may claim the homestead exemption under the bankruptcy laws in your state of residence or under federal bankruptcy rules, if applicable. As of 2010, only 17 states allow debtors to opt for the use of federal bankruptcy exemptions. Under federal guidelines, the homestead exemption limit is $21,625. This amount may be doubled to $43,250 for married couples filing jointly. State homestead exemption limits vary widely. For example, in the state of Florida, you may claim an unlimited amount toward the homestead exemption, while New Jersey law does not offer any type of exemption at all.