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You need to find out how much of the home can be protected by the laws of your state. If the owner has more equity in the house that is covered by the exemption law, the creditor who gets a judgment can ask the court to sell the home. For example if the house is worth $150,000, and the owner has $30,000 equity and the state exemption is $15,000 then the debtor gets the $15,000 and the house is sold, the lender is paid and the creditor gets what is left. Judges don't usually allow a person's home to be sold though, especially if it is jointly owned and some states do not allow it by law. Usually a lien is placed against the property and continues to add on interest until it is paid, a $1500 lien can end up being $10,000 + in some cases.

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โˆ™ 2006-03-07 00:13:18
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Q: What if you are sued and the only asset you have is your house and its value is much greater than the claim?
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Related questions

When is a gain on disposal of an asset recorded?

A gain is recorded when the asset is sold for a price greater than the assets book value.

The book value of an asset is the same as market value of the asset?

Book value of an asset is the value which is shown in books of accounts while market value of asset is the value which is currently same asset is selling in market so both of these values are not same but it can be same but normally they are not same.

When an asset is sold a gain occurs when the?

Gain on sale of asset is occured when actual value of asset is less then the sale value of asset.

Would a mutual fund be an example of a real asset?

Yes mutual funds are examples of real assets but the value of the asset is not fixed. The value changes with the changes to the stock market and the performance of the fund house.

Is it unlawful to sell a house greater than it true value?


Is unexpired insurance an asset?

Yes. Unexpired insurance, or prepaid insurance, represents value to the business since it has utility and is owned by the business (the company has claim to the policy). Therefore by definition, unexpired insurance is an asset.

Is there any difference between absolete asset and assets at written down value?

Obsolete asset is that asset which suddenly becomes obsolete due to any technological change or any reason and has no value while written down asset is asset which is usable asset with written down value

Difference between book value and fair value in accounting?

Book value of asset is the value of asset shown in books of accounts while fair value of asset is the current price at which that product is selling or sellable in market.

What is Book value vs fair value?

Book value is the value of asset shown in financial statements while fair value is the value at which asset can be sold in market

Is the fair value of an asset retirement obligation recorded as an increase to the related asset and as a liability?

Is it true the fair value of an asset retirement obligation recorded as an increase to the related asset and as a liability?

What is the meaning of Scrap Value in accounting?

scrap value is the residual value of an asset. the valu of an asset which exists after its estimated life period

What is a variable asset?

the asset value which changes with respect to the demand constraints is called varible asset

What does asset mean what does asset mean?

asset is anything that appreciate in value over a period of time

What are the terms depreciable value salvage value and estimated life mean?

Depreciable Value: It is the value of asset up to which any asset can be depreciated. Salvage Value: It is the value which a company can get on sale of fully depreciated asset. Estimated useful Life: It is that life of an assets which a company determine at the time of purchase for which an asset can be utilized in business to generate revenue.

What is the difference between net asset value and gross asset values?

Net asset value is adjusted by many factors including liability and depreciation. Gross asset values are the total value without deduction. Net worth starts with gross values.

If you sell a listed asset how much goes toward bankruptcy?

If the bankruptcy is a Chapter 7, and the asset is not exempt, you cannot sell it. It is the property of the bankruptcy estate administered by the trustee. If the asset is exempt, you can sell it and keep the proceeds. If the asset sells for a lot more than you listed its value as, be prepared for a claim by the trustee. If in a Chapter 13 and the Plan has been approved by the court, you are a debtor in possession and can sell assets with no problem, unless, as above, the asset turns out to have a significantly higher value than you listed.

What is the estimated salvage value of a fixed asset?

1. Estimated salvage value is the amount which is expected to be received from disposal of fully depreciated asset after useful life of asset.

What requirements must be met to record an asset?

there are three requirements: 1) the asset must be owned by the entity, 2) the asset must has a monetary value, and 3) the monetary value of the asset must be objectively measurable.

State the difference between real asset and financial assets?

An Asset per say is something that has a monetary value and can be sold for money. The terms real asset and financial asset mean the same thing and can be used interchangeably as long as the asset under consideration has a positive value.For ex: Let us say I have a gold bar of 100 grams weight, it is an asset, a financial asset. And since gold has a value (in terms of dollars/currency) it is a real asset.Any asset that does not have any value as of the current time period cannot be considered a real asset.for ex: let us say, you owe me $1000 which you intend on repaying in October of 2012, as of today it is a financial asset but is not a real asset because as of today this asset is worthless and has a value only next year.

Depreciation is a process of cost allocation and not valuation What does this mean?

Depreciation spreads the cost of a fixed asset over the useful life of that asset so a portion of that cost is recognized as an expense in each period that the asset is in service. The original cost, less the accumulated depreciation is the net book value of the asset. The net book value may not represent the actual market value of the asset. Depreciation is not concerned with the market value but rather the value of the contribution that the asset makes to the business.

The difference between the cost of an asset and the accumulated depreciation for that asset is called?

Book Value is the difference between the cost of an asset and the accumulated depreciation of that asset.

If equipment priced at 130000 is acquired by trading in a similar asset at 8000 What is the cost basis of the new asset?

As trade-in value of old asset is 8000 which is deducted from price of new asset and actual cash paid to acquire new asset is 122000 so the base value for new asset will be 122000.

Can an asset be depreciated to the point where its value becomes negative?

That can never happen. An asset will either be depreciated to its salvage value, or to zero, depending on whether or not it has a salvage value.

The carrying value of a depreciable asset equals?

The carrying value (or book, or, net value) of a long term asset equals cost minus accumulated depreciation.

What is afinancial asset?

A financial asset is a tangible liquid asset that derives value because of a contractual claim of what it represents. Stocks, bonds, bank deposits and the like are all examples of financial assets. Unlike land, property, commodities or other tangible physical assets, financial assets do not necessarily have physical worth.