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Homestead Exemption Domicile Requirements in Bankruptcy Law

New Bankruptcy Laws on Florida Homestead Protection

New domicile requirements have been included in bankruptcy laws to prevent individuals from moving to a state to just take advantage of better homestead protection. Homestead exemptions are very important in the bankruptcy process.

Various domicile rules apply depending on when the house was purchased along with other requirements.  A homeowner who purchased a home at least 40 months before filing for bankruptcy can use the homestead exemption of the state where the home is located.

If the homeowner purchased a home at least two years ago, the homeowner may use the homestead exemption of the state where the home is located. However, if the homeowner purchased the home in the previous 40 months prior to filing for bankruptcy, then the homestead exemption is capped at $136,875.

The cap, however, does not apply if the home was purchased by the homeowner with revenue from from the sale of another home in the same state.

A homeowner who purchased his or her home within the two years preceding bankruptcy must use the homestead exemption of the state where he or she was living for the most part of the 180-day period that ended two years before the bankruptcy filing date. The $136,875 cap will also apply.

Having the right legal counsel can make a difference during a bankruptcy or foreclosure. The Orlando bankruptcy and foreclosure firm of Lanigan and Lanigan has 36 years of experience assisting clients with various bankruptcy and foreclosure issues like homestead exemptions. Contact Winter Park and Central Florida attorneys Eric Lanigan and Roddy Lanigan with any legal needs you may have.

 

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