Florida Exemptions vs Federal?

[BarbaraL]

I lived in Florida most of my life; moved from there to North Carolina in July, 2006; then to Texas Oct, 2007. From my questions in another forum, I understand that I may file in Texas after at least 91 days residency, but would have to use the Florida exemptions. I have a meeting with an attorney this afternoon, and was trying to do further research on my own prior to that meeting.

I ran across some forum postings by a FLA BK attorney, where he stated, "Florida law applies Florida's property exemptions only to residents of Florida. The day a person relinquishes Florida residency he also gives up Florida's creditor protections in and out of bankruptcy. A bankruptcy court ruled in the 1989 case of In re Schultz that a person who has to file bankruptcy in another state after leaving Florida but prior to qualifying for the exemptions of the new state of residence may claim the default federal bankruptcy set of exemptions provided under Section 522 of the Bankruptcy Code. Other than Florida's homestead protection, the federal exemptions are generally more liberal than Florida's exemptions."

Does this actually mean I could/would use the federal exemptions after all? Or am I reading this all wrong?

Thanks!

[FreshLikeADaisy]

It certainly sounds like you are reading it correctly, and I know that the Federal exemptions exist in part for people who fall into just that sort of a "donut hole" where they are not eligible for the exemptions of either the previous state or the present, not just people who are moving back home from a stint overseas. But just who would fit into that status and how... I would not want to presume an answer because you have so much at stake. Definitely ask the attorney that one!!!

[BarbaraL]

For anyone else's future reference, the attorney I had the consult with did some further research, and she said that this case law had been up-held. We could/would use the federal exemptions and not Florida's.

[skatermom]

income

would you have to use Federal income limit as well? I cant find that anywhere, Ive heard its substantially less than FL

[MomIcantFindmy]

If you live in Florida and have the opportunity to use Federal exemptions they are much more generous. Unless of course you own a house in Florida.

You still use the median income, housing, transportation figures from where you file (location, Florida).

[DebtorDan]

We filed recently in Texas, and yes, if the state you are filing in offers federal exemptions, even though you can't use the state's exemptions, you can use the federal ones. You use the income levels, etc., from where you are filing (in this case, Texas).