The Professional
Bankruptcy Dictionary


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H

homestead exemption

An exemption granted under state law or the Bankruptcy Code for the debtor's residence, protecting it from seizure by the bankruptcy estate.

hypothetical status of the trustee

The legal fiction created under 11 U.S.C. § 544 permitting the trustee to exercise avoidance powers that would have been available to a bona fide purchaser of real property, a lien creditor, or an execution creditor, had such persons existed on the date the bankruptcy was filed.