Florida Bankruptcy Law Blog

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

Can Chapter 7 Be Dismissed If You Pass The Means Test?

Jordon Bublick reports in his Miami Florida Bankruptcy Law Blog an interesting court decision about dismissal of Chapter 7 bankruptcy for substantial abuse. Link: ABI Bankruptcy Exchange » Miami Florida Bankruptcy Law. 

A chapter 7 bankruptcy can be dismissed if the debtor is abusing the bankruptcy process, most often because he makes too much money relative to expenses. Most debtor attorneys have argued that the new bankruptcy law makes the "means test" the exclusive test of substantial abuse. If you pass the means test then you qualify for chapter 7 regardless of other analysis of income and expense. Mr. Bublick's blog states that In the case of Perlin v. Hitachi Capital America Corp., ___ F.3d ___, 2007 WL 2215602 (3rd Cir. 2007), the court held that even if you pass the means test a creditor or trustee can move to dismiss your case because you make too much money.