competition in focus
competition in focus Debtors filing for bankruptcy are
allowed to keep certain assets. The exemption for a homestead is limited to
$125,000 if the property was acquired within the previous 1215 days (3.3
years). The cap is not applicable to any interest transferred from a debtors
previous principal residence which was acquired prior to the beginning of the
1215-day period. competition in focus magazine The value of the state homestead
exemption is reduced by any addition to the value brought about on account of a
sale of nonexempt property made by the debtor with the intent to evade or
defraud creditors during the 10 years before the bankruptcy filing. An absolute $125,000 homestead cap applies if
either the court determines that the debtor has been convicted of a felony
demonstrating that the filing of the case was an abuse of the provisions of the
Bankruptcy Code, or the debtor owes money due to criminal acts. This limitation
is not applied if the homestead property is "reasonably necessary for the
support of the debtor and any dependent of the debtor." competition in focus magazine online
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