The Attorney General’s Office is asking a federal judge to overturn a bankruptcy court ruling that some legal experts say could harm New Hampshire homeowners who fall into debt, the New Hampshire Union Leader reported. New Hampshire state law establishes a “homestead right,” stating: “Every person is entitled to $120,000 worth of his or her homestead, or of his or her interest therein, as a homestead.” Bankruptcy attorneys say that protection typically has been doubled for married couples, to $240,000. However, in June, the chief judge in U.S. Bankruptcy Court, Bruce Harwood, ruled that the husband of a Merrimack woman seeking bankruptcy protection was not entitled to a homestead exemption because he is not on the deed to the family’s home. The bankruptcy trustee had objected to the homeowner’s claim of a second homestead exemption for her husband, and Harwood agreed. “Because the Debtor’s spouse is not an owner of the property, he is not entitled to claim an exemption,” he wrote in his opinion. “The couple is not allowed to ‘double-dip’ and claim $240,000 as exempt,” he wrote. Nashua attorney Leonard Deming, who represents the homeowner, has appealed that decision to the U.S. District Court in Concord.
