Date: February 10, 2011

Some states have a larger exemption for the value of a home homesteaded by a Debtor. Texas is fortunate enough to have an unlimited cap for people who have been a domiciliary of Texas for over a certain period of time. However there is a problem if a person purchases the home 1215 days before filing bankruptcy. The law has a set amount if the homestead is purchased within the 1215 days of bankruptcy, check with your bankruptcy attorney for updates on the allowable deduction:

On September 28, 2005, the debtor filed for relief under Chapter 7 of the Bankruptcy Code. The debtor elected state law exemptions in accordance with the provisions of 11 U.S.C. § 522(b). In her Schedule C, the debtor claimed her homestead exemption on the Forney Property in the amount of $359,000. Wallace filed a timely objection to the debtor’s claimed homestead exemption, arguing that 11 U.S.C. § 522(p)(1) capped the debtor’s homestead exemption at the federal statutory amount of $125,000 because the debtor acquired her homestead interest in the Forney Property within the 1,215-day period preceding the filing of her bankruptcy petition. In re Rogers, 513 F.3d 212, 216 (5th Cir. 2008)

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