What are the New Federal Domicile Requirements to File for Bankruptcy?

Posted over 4 years ago. Applies to Minnesota, 1 helpful vote

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1

What are the new Federal Domicile requirements to file for Bankruptcy?

The new law states that we must look back 2 years (24 months) from the date of filing. In addition, we must then look at the 6 months prior to the 2 years. The place a person lived at the majority of the time in the 6 month period will determine which state exemption law will apply. Definition of Domicile: the state in which a person has his/her permanent residence or intends to make his/her residence, as compared to where the person is living temporarily. Domicile depends on intent, location of a home where a person regularly sleeps.

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What new Minnesota Domicile Bankruptcy rules apply when claiming a homestead?

The new Minnesota Bankruptcy law states you must have lived in the state for three years and four months (40 months) before a person can claim Minnesota's full $300,000 of equity homestead exemption. Prior to this time frame, a person is limited to an exemption of $136,875 of equity; provided a person has lived in Minnesota long enough to use the exemptions stated in the Minnesota statues. Minnesota Homestead Exemptions: Real property, mobile home or manufactured home to $200,000 or, if the homestead is used primarily for agricultural purposes, $500,000; cannot exceed 1/2 acre in city or 160 acres elsewhere. Minn.Stat.Ann. ?510.01, 510.02, 550.37 subd. 12

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What new Federal Domicile Bankruptcy rules apply when claiming a homestead?

The new Federal Bankruptcy law states you must have lived in the state for a minimum of three years and four months (40 years) before as person can claim homestead protection greater than $125,000. Federal Homestead Exemptions: Real property, including mobile homes and co-ops, or burial plots up to $20,200. Unused portion of homestead, up to $10,125, may be used for other property and - $1,075 of any property, and unused portion of homestead up to $10,125. 11 U.S. C. ? 522(d) (1) 522(d) (5)

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