A homeowner has an unpaid hospital bill for $20,000. The hospital files suit and wins a judgment for the full amount. Is the homeowner's home (which he owns free and clear) at risk?

A. No, because the debt must by $25,000 to force a sale
B. No, because the debt must exceed the value of the homestead
C. Yes, but he may be partly or fully protected by homestead laws
D. Yes, a court may always force a sale to fulfill a judgement

Answer: C. Yes, but he may be partly or fully protected by homestead laws
Homestead laws are state-level laws that give limited protection against foreclosure over judgement liens. Generally, foreclosure is not allowed unless the net value of the property exceeds the homestead exemption amount.