Arizona Bankruptcy Law information
Q. Does the new bankruptcy law change the homestead exemption for all states? In some states, under the previous law, debtors could elect either the federal exemptions or the state exemptions. Is that still true, or has that changed? If it did change, I assume that means that states like Arizona, Florida, and Texas can no longer offer high or unlimited homestead exemptions?
A. Debtors may elect state exemptions in the state in which they have lived for the 730 days prior to the filing. If they have moved during that 730 day period, the state exemptions are those for the state in which they have lived for the majority of the time for the 180 days before the 730 day period. Clear? Ok, then, 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. Still with me? Ok, 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 non-exempt assets during the 10 year period before the filing, the exemption is reduced by the amount attributed to the fraud. those who were voted in before will get voted out, and a new Congress can undo some of the crap in this so-called bankruptcy "reform" bill. .