Important Homestead Decision Under 2005 Bankruptcy Act

In the recent decision of In re: Kaplan, 2005 WL 2508151 (Bankr. SD 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.

Jordan E. Bublick, Attorney at Law, Practice Limited to Bankruptcy Law, Board Certified Specialist in Consumer Bankruptcy Law (American Board of Certification), Member of the Florida Bar since 1983

New Bankruptcy Laws Go into Effect

On April 20, 2005, President Bush signed the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (“BAPCPA”). This 512 page Act makes significant changes to the Bankruptcy Code. On October 17, 2005, the majority of the provisions of the new law went into effect although certain provisions became effective upon enactment and others have individualized effective dates.

Jordan E. Bublick, Attorney at Law, Practice Limited to Bankruptcy Law, Board Certified Specialist in Consumer Bankruptcy Law (American Board of Certification), Member of the Florida Bar since 1983