Can Recently Moved Debtor Apply Florida Homestead In Another State?

I came across an interesting case in the course of research for a client who had moved from Florida to Georgia and intended to file bankruptcy in Georgia where he had purchased a home. The client wanted to apply Florida’s homestead exemption to protect the new Georgia home. Because the client would file having lived in Georgia for less than two years Georgia law would not apply to the bankruptcy. If Florida law, the place of the most recent residence, did apply then the client assumed he could use Florida’s homestead law to protect the Georgia house.

I found that this same issue was addressed in another bankruptcy case in September, 2007. In that case, the court ruled the debtor could not transport Florida’s homestead protection to his new state of residence. The court stated that the new bankruptcy law required that the court apply Florida "laws" but not Florida "exemptions." Under Florida law, only homes situated in Florida could be protected by the States’ homestead exemptions. Because this debtor’s new home was not located within Florida the application of Florida’s laws forbid application of homestead exemption to a property in Georgia. The case is In re Adams, 2007 Bankr. Lexis 3064.

posted by Jonathan Alper, bankruptcy and asset protection attorney, Orlando, Florida