Exemptions

[sansim]

What is the name of your state? Texas

Since I have not lived in Texas for 2 years, I understand that I will have to use the homestead exemption from my previous state. Does it also mean that I have to use ALL of my previous home states exemptions or can I use Oregon's homestead exemption and Texas' other exemptions?
Thanks

 

[Ladynred]

The new homestead provision, effective now, doesn't say you can't use the TX exemption, it says the following:

Homesteads:

* The exemption for a homestead is limited to $125,000 if the property was acquired within the previous 1215 day (3.3 years). The cap is not applicable to any interest transferred from a debtor's previous principal residence (which was acquired prior to the beginning of such 1215-day period) ;
* The value of the state homestead exemption is reduced by any addition to the value brought about on account of a disposition of nonexempt property made by the debtor (made with the intent to hinder, delay, or defraud creditors) during the 10 years prior to the bankruptcy filing.
* An absolute $125,000 homestead cap applies if either:
o the court determines that the debtor has beeen convicted of a felony demonstrating that the filing of the case was a abuse of the provision of the Bankruptcy Code; or
o the debtor owes a debt arising from a violation of federal or state securities laws, fiduciary fraud, racketeering, or crimes or intentional torts that caused serious bodily injury or death in the preceeding 5 years. NOTE: This limitation is inapplicable if the homestead property is "reasonably necessary for the support of the debtor and any dependent of the debtor."

You can't use the unlimited TX homestead exemption, you're stuck with the $125K CAP for your homestead exemption.

The rest of the new law regarding exemptions and the 2.2 year period doesn't go into effect until 10/17/05.

 

[mymymy]

If I'm reading you correctly.. you're concerned about the residency requirements for filing, yes?

The 2 year requirement has not kicked in yet..

New Bankruptcy Law taking effect on October 17, 2005:
The state you use for your exemptions is:

The state you lived in for the 730 days (2 years) before filing; or
If you did not live in a single state in the previous 2 years you use the state where you lived the majority of the 180 period preceding the 2 year period; or
If the preceding renders you ineligible for any exemptions then the debtor is allowed to choose the federal exemptions.

At this time, I *believe* Texas' residency requirement is still 180 days. How long have you lived there?

 

[Ladynred]

I *believe* Texas' residency requirement is still 180 days.

Residency requirement under the CURRENT law is that you must have resided in the state you're filing in for the greater part of the 180 days preceeding your filing date. In other words, if you've live in TX for at least 91 days, you can use the TX exemptions and file in TX.