How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask socrateaser Your Own Question
socrateaser
socrateaser, Lawyer
Category: Real Estate Law
Satisfied Customers: 38265
Experience:  Attorney and Real Estate broker -- Retired (mostly)
10097515
Type Your Real Estate Law Question Here...
socrateaser is online now
A new question is answered every 9 seconds

If you file chapter 7 bankruptcy in one state and do not own

Customer Question

If you file chapter 7 bankruptcy in one state and do not own a home, then move to Florida and buy a home. Which homestead exemption would you be allowed to use?
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  socrateaser replied 1 year ago.

Hello,

The short answer, is that you would use the Florida homestead exemption. Now, here's the long answer:

The homestead exemption is limited to $155,675 if the debtor acquired the property during the 1,215-day period (3 years, 4 months) preceding filing of the bankruptcy petition. Bankr. Code § 522(p)(1)(D). Also, the value of a debtor's interest in real or personal property used by the debtor/debtor's dependent as a residence, or claimed as a homestead or burial plot, may be reduced to the extent the value is attributable to nonexempt property the debtor disposed of in the 10-year period preceding filing of the bankruptcy petition “with the intent to hinder, delay, or defraud a creditor.” Bankr. Code § 522(o).

In plain English, during the first 3 years and four months of ownership of a Florida homestead, if the net equity value of the home that you purchase in Florida does not exceed $155, 675 (fair market value minus any secured mortgages), and the funds that you use to purchase the property would have been exempt from bankruptcy claims while you resided in your previous state of residence, then those funds can be used to purchase a home in Florida, and the funds will be protected by the Florida homestead exemption.

I hope I've answered your question. Please let me know if you require further clarification. And, please provide a positive feedback rating for my answer -- otherwise, I receive nothing for my efforts in your behalf.

Thanks again for using Justanswer!

Customer: replied 1 year ago.
I am a confused. Does what you have said apply to my situation, in that, I filed BK in another state, (SC), I sold a property that was not part of the BK estate and purchased a home in Florida 3 months after I filed BK. The BK trustee wants the house in Fl. Can I get any homestead exemption?
Expert:  socrateaser replied 1 year ago.

Now I'm confused. Please explain how the property that you sold was not part of the bankruptcy estate.

Thanks in advance.