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The homestead exemption protects equity in your home from creditors. The examples below assume your home is worth $220,000, and you have a $50,000 homestead exemption available. Example 1. If you own a house worth $220,000 and have a mortgage balance of $170,000, you have $50,000 of equity in the property.
(Official Form 106C) lists the property that you believe you are entitled to keep. If you do not claim the property on this form, it will not be exempted, despite your rights under the law. Before filling out this form, you have to decide whether you will use your state exemptions or the federal exemptions.