Property Ownership

Vermont's 'homestead protection' in bankruptcy law allows a Vermont debtor to exempt how much equity in their principal residence from bankruptcy creditors?

A$100,000
B$125,000 (Vermont's homestead exemption under Vermont law)✓ Correct
C$50,000
DNo exemption — all equity is available to creditors

Explanation

Vermont's homestead exemption (12 VSA § 2740) allows a debtor to exempt up to $125,000 of equity in their principal residence from bankruptcy creditors. This protects Vermonters' primary homes from most creditor claims, encouraging homeownership.

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