Holy Smokes !! Bankruptcy Laws About to Change

The Senate's immanent has been widely reported in the press. The bill proposes an effective date six months after it is signed by the President. The bill is extensive and complex, and it will have some Florida asset protection consequences. It is important to remember that the new bankruptcy law is only applicable when a debtor chooses to file bankruptcy. None of the bankruptcy reform act impacts Florida's asset protection provisions of the Florida constitution or Florida statutes. Therefore, the Bankruptcy Reform Act should not affect asset protection planning against state court collection efforts. The primary impact upon Florida asset protection appears will be felt by those debtors who move to Florida with the intention of buying a homestead and subsequently filing bankruptcy. Under current bankruptcy law, a debtor from another state who establishes Florida residency must wait at least twelve months after purchasing the Florida homestead before filing bankruptcy. The new bankruptcy law extends the waiting period to 40 months.

I will continue to post comments about the new bankruptcy law as the law is studied and explained.


posted by Jonthan Alper, asset protection and bankruptcy attorney, Orlando, Florida.

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Comments (4) Read through and enter the discussion with the form at the end
lola - March 10, 2005 12:31 AM

I think this is tragic

Brian - March 10, 2005 10:05 PM

If someone's assets are well protected and there is a large judgment against him, how will the new bankruptcy laws affect erasing that one new debt? For example, a doctor without malpractice insurance who gets sued?

Thanks, Brian

sarah - July 29, 2006 2:29 PM

What if you move to Florida and want to file bancruptcy, but you RENT... does this same law apply??? You must wait 12 or 40 months? please email me.

jack janes - November 30, 2009 11:46 AM

First, i would like to thank you for all the info. posted on you site, it has greatly helped me in understanding some of the new laws, an homestead protections. My wife an i have recently retired an will be buying a modest home in Florida, was concerned about future creditors, big medical bills,etc being able to take our home because of the new bankruptcy law that might give them the right to force it upon us an override the homestead protection? have all ways had excellent credit up till now, but now living on social security only just trying to make sure we at least have a home we can stay in, thanks again Jack

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