Opinion ID: 2330602
Heading Depth: 2
Heading Rank: 1

Heading: Homestead Exemptions

Text: [¶ 9] The Ouellettes recognize that the Department's security interest in their residence and real estate is not subject to their homestead exemptions. The statute states: The debtor's interest in a residence shall not be exempt from claims secured by real estate mortgages on or security interests in the residence or claims of lien creditors under [the mechanic lien statutes]. 14 M.R.S. § 4425(1) (2006). They contend that the value of their real estate exceeds the amount owing to the Department. In the event of a sale and a surplus after the Department has taken what it is owed, they believe that their homestead exemptions take priority. However, the court has not yet ruled on the amount of their exemptions and where in the order of priorities their exemptions should be placed. [¶ 10] The statute creating the homestead exemption provides that every debtor has an interest in property that the debtor uses as a residence in an amount not to exceed $35,000 in value. 14 M.R.S. § 4422(1)(A) (2006). But if the debtor is either sixty years of age or older or a person physically or mentally disabled and because of such disability is unable to engage in substantial gainful employment and whose disability has lasted or can be expected to last for at least 12 months or can be expected to result in death, the exempt amount is increased to $70,000. 14 M.R.S. § 4422(1)(B) (2006). Both Ouellettes claim to be entitled to the $70,000 exempt amount and state that they are each physically disabled and unable to engage in substantial gainful employment. In addition, they both allege facts in their affidavits from which it could be determined that they are both presently sixty years of age or older. The court neither determined whether the Ouellettes were each entitled to a $70,000 homestead exemption nor whether their exemptions are to be taken before or after any or all of the interested parties.