Originally posted by Karceno888
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If you're trying to protect a large amount of equity in a home (more than $128K), then Florida, Texas, Iowa, and Kansas. This is because these 4 States have an unlimited homestead exemption. It's why so many wealthy people make Florida their State of domicile. You can have a $8,000,000 house in Florida owned outright, go through bankruptcy, and get to keep the house. (Likely not the furnishings, but certainly the house!)
If you're trying to protect equity in property other than a home, most other States are better than Florida. For example, Florida has a paltry $1,000 vehicle exemption. Similarly, Florida's "personal property" (think furniture, clothing, etc), is also only $1,000. Yeah... not easy to exempt much. (However, you get an additional $4K per debtor if you don't use the homestead exemption.)
Regardless, of these facts, I still think the four States mentioned are the best. You pay down your mortgage and put money into the house. They can never take the house. Just sell it after the bankruptcy and you're right back on your feet; at least in my extreme case of the $8,000,000 home.
[If you're thinking about moving to reap the benefits of the unlimited homestead exemption in these States, think again. There are venue and exemption rules in place to prevent "venue" shopping. There are also federal rules in place which don't allow a person to receive all of the unlimited homestead exemption until they have resided in that State for 2 years.]
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