Category Archives: florida homestead

Florida Homestead Protection Law in Bankruptcy:

As I wind down my website, I thought I would include here an old article that would help attorneys and others understand Florida homestead protections in bankruptcy. Case law should be updated. Attorney Seminar: Homestead Jeffrey Solomon has written and presented seminar materials for continuing legal education credit about the new bankruptcy law. The materials below discuss changes that sometimes will restrict the unlimited Florida homestead. (Case law updates must be reviewed prior to relying upon the information provided.) CHANGES IN HOMESTEAD EXEMPTION IN BANKRUPTCY: 91-730-1215-10 Introduction: BAPCPA made substantial changes which limit the ability of many debtors to protect their homestead. On April 20, 2005, the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005(BAPCPA) was signed. The Reform Act took effect on October 17, 2005 for most matters. The Reform Act was immediately effective as to changes to the homestead exemption. The changes have a great impact on…
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Beware Home Office Income Tax Deduction

The home office income tax deduction has formed the basis for a denial in part of the Florida homestead exemption.   More specifically, there is now case authority that the exclusive use of a portion of a Florida homestead which in part can be evidenced by the home office income tax deduction and depreciation of the home  justifies apportioning the residence to homestead and non- homestead.  The idea is as follows:  Suppose 25% of the home is exclusively used for business such as an office.  Or assume that 25% is exclusively used by a tenant who is paying rent for one room in the home.   The trustee can sell the home, 75% of the equity belongs to the debtor, and 25% of the net proceeds would be retained by the trustee. Sounds contrary to the whole idea of the liberal protections for a Florida homestead? Sounds contrary to the…
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Bankruptcy First, Sell Homestead Later

Timing is everything in bankruptcy.  Bad timing cost one Florida debtor his home. The debtor’s homestead in Florida, with some exceptions, is exempt from creditors.  It is well understood under Florida homestead law including in a Florida bankruptcy that a homeowner may sell the home, retain the proceeds(in a separate bank account), and retain the homestead exemption in the proceeds for a reasonable time to purchase another exempt homestead. Carpenter v Scott Brown, 2013 US Dist Lexis 112607 (August 9, 2013) affirmed Judge Ray’s decision denying homestead exemption upon the sale.  But the facts of the case must be reviewed.  The debtor had already signed a contract to sell and the closing was scheduled for just after the filing of the bankruptcy petition.  The debtor did reside at the homestead on the date the bankruptcy petition was filed.  The key fact here is that the debtor was moving to Massachusetts to stay with family….
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