Is the following statement true or false:
Together, you and your spouse do not own property or assets worth more than $25,000.
When calculating the value of your assets, do NOT include any money that you still owe on a secured loan. However, you must include your equity in the property. A debt is a secured debt if the person who loaned you the money kept an interest in the property and your promise to pay the debt is backed by that property. For example, when you borrow money to buy a car or take out a mortgage on a trailer, your car or trailer can usually be repossessed by the bank to pay off your debt if you do not make your payments. These are examples of secured debts. To determine how much equity you must include in your asset total, determine how much your property is worth, then subtract the amount that you still owe on the property. For example, if your car is worth $5,000, and you still owe the bank $4,500 on your car loan, you should only count $500 of equity here.
(AMOUNT THE PROPERTY IS WORTH)
- (AMOUNT YOU STILL OWE ON THE PROPERTY)
YOUR EQUITY IN THE PROPERTY
page R