Homestead Exemption

The Homestead exemption laws were affected when the new bankruptcy laws were introduced. The Homestead exemption laws differ from state to state. Florida Homestead exemption laws, for example, allow bankruptcy filers to keep their homes. The new bankruptcy laws introduced the limits of the values of the homes that bankruptcy filers can keep. The ceiling of value did not use to exist and bankruptcy filers used to be able to keep the homes no matter the value or cost. FL Homestead exemption laws had saved many people from destitute and given them a fresh start from filing bankruptcy. Kansas Homestead exemption laws, and Texas Homestead exemption laws also allow people who have sought bankruptcy protection to keep their homes.

The new bankruptcy laws and Homestead exemption

For the first time in the Homestead exemption act, the new bankruptcy laws put ceilings to the value of some Homestead exemption. The new bankruptcy laws take precedence over state Homestead exemption laws. However, the new bankruptcy laws do not put limitations on all Homestead exemptions, just some if the bankruptcy court deems the bankruptcy filer had committed certain crimes such as racketeering within five years of filing bankruptcy.

Homestead exemption in various states

Since the Homestead exemption varies substantially from state to state, you need to look into state law concerting Homestead exemption before filing bankruptcy. Each state has its own limitation of the value of the home the bankruptcy filer is allowed to keep. Some states allow $100,000 and up whereas other states allow less than $10,000. Consider where you live and what you can keep before filing Chapter 7 bankruptcy.