Homestead law protects people who are at risk of losing their property due to financial difficulties. If you designate your property as a homestead, it can be shielded from certain creditors. It's important to be aware that there are certain limitations to this law in Wisconsin.
Property Minimums and Maximums
There is an upper limit to the value and both lower and upper limits to the acreage for a property that can be designated as a homestead under this law. The value of the property cannot exceed $40,000 for a single individual. The property's acreage must be at least 1/4 of an acre but no larger than 40 acres, regardless of whether it's located in a rural or an urban setting.
Some Creditors Can Still Collect
Certain exceptions apply under the homestead law. There are conditions under which a creditor can collect debts they are owed by putting the property up for sale. Past due taxes to the State of Wisconsin or local municipalities, money owed to workers for property improvements, a preexisting property lien, or the property being used as collateral for a mortgage are all instances in which the homestead law doesn't prevent the sale of the property.
Laws that protect your property from creditors are complicated. If you are experiencing financial difficulty and are thinking about declaring your property as a homestead, contact the Law Office of Timothy R. Hall to better understand Wisconsin homestead law.