Senate committee hears push to raise New Hampshire homestead exemption; debate focuses on $1 million proposal and trust language

CONCORD, N.H. — Lawmakers and attorneys on Tuesday heard hours of testimony on House Bill 617, a proposal to raise the state's homestead exemption that now protects a homeowner's equity from some creditor actions.

Representative Melissa Litchfield, sponsor of the bill, told the Senate Ways and Means Committee the current individual exemption of $120,000 (which doubles for married couples under current statute) no longer reflects modern housing values and left homeowners exposed. "My goal in this is just simply to protect the roof over your head," Litchfield said, explaining her bill would increase the exemption to $1,000,000 and include provisions for primary residences, qualifying trusts and a six'month reinvestment window after a sale.

Supporters including bankruptcy attorneys and small'business advocates described practical effects when equity exceeds the exemption. An attorney who said he represents debtors in bankruptcy urged a substantial increase, citing the 2023 New Hampshire bankruptcy court decision Brady v. Sumske, which his testimony said limited homestead protection to a single exemption…