of 2005 added several brand-new restrictions on the amount that a
state may allow to a debtor as a homestead exemption. These were designed
to deter debtors: from moving from state to state just for the purpose
of taking advantage of more generous homestead limits, one step ahead
of their creditors, like the case of OJ Simpson moving from California
to Florida; from using nonexempt money to pay down mortgages and thereby
increase their home equity to claim as exempt; from profiting at the
expense of defrauded or injured creditors.
Code Sections 522
These limits are set forth in Bankruptcy Code Sections 522:
amount of the homestead exemption will be reduced by
the value of any property transferred by the debtor
within 10 years prior to the filing of the petition
with the intent to hinder, delay or defraud his creditors
(unless the property transferred was of an exempt nature).
homestead amount is capped at $ 136,875 if the property
was acquired by the debtor within 1215 days of the bankruptcy
petition and the debtor's previous residence was in
a different state.
homestead amount is capped at $ 136,875 if the debtor
has been convicted of a felony or owes a debt arising
from a violation of federal securities law or from any
criminal act, intentional tort, or willful or reckless
misconduct that, within the past 5 years, caused serious
physical injury or death to another person, unless the
debtor can show that the property is reasonably necessary
for the support of the debtor and his dependents.
Attorney by State