Sunday, October 16, 2005
Important Homestead Decision Under 2005 Bankruptcy Act
In the recent decision of In re: Kaplan, 2005 WL 2508151 (Bankr.S.D.Fla.), Judge Robert A. Mark of the Bankruptcy Court of the Southern District of Florida upheld the application of one of the homestead limitations imposed by section 522(p) the 2005 Bankruptcy Act (BAPCPA). The Court upheld the validity of the provision that limits the Florida homestead exemption to $125,000 if the property was acquired within 1215 days of the filing for bankruptcy. In doing so, the Court refused to follow the reasoning of a recent Arizona Bankruptcy Court decision which held that such provision does not apply in "opt out" states such as Florida.