Homestead Exemptions

New Bankruptcy Laws on Homestead Exemptions

Debtors may elect state exemptions in the state in which they have lived for the 730 days prior to the bankruptcy. If they have moved during that 730-day period, the state exemptions are those for the state in which they lived the majority of the time for the 180 days before the 730-day period.

Regardless of the level of state exemptions, the debtor may only exempt up to $125,000 of interest in a homestead that was acquired within the 1,215 day period prior to the filing, but the calculation of that amount does not include any equity that has been rolled over during that period from one house to another within the same state. If your property was acquired prior to the 1,215 day cutoff, you may take the full homestead exemption amount.

For those who have violated securities laws or engaged in certain criminal conduct, the cap is $125,000, notwithstanding a higher State law allowance. To the extent the homestead was obtained through fraudulent conversion of nonexempt assets during the 10-year period before the filing, the exemption is reduced by the amount attributed to the fraud.

Click HERE to review a detailed list of New Bankruptcy Laws.

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