Does the BAPCPA affect the amount of home equity exemption I can claim?
Yes it does. Under the previous Chapter 7 rules, an individual in bankruptcy could claim exemptions for an amount of home equity determined by the state rules where their home was located, though there was a three month residency requirement and other exceptions. Under the BAPCPA, however, the residency requirements are much longer (now 40 months prior to filing). The residency requirements apply for claim of exemption over $136,875. So, even if your home state's exemption allowance is higher, the exemption is capped at $136, 875 if the residency requirement is not met. After 40 months, the applicable state exemption applies.
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Yes it does. Under the previous Chapter 7 rules, an individual in bankruptcy could claim exemptions for an amount of home equity determined by the state rules where their home was located, though there was a three month residency requirement and other exceptions. Under the BAPCPA, however, the residency requirements are much longer (now 40 months prior to filing). The residency requirements apply for claim of exemption over $136,875. So, even if your home state's exemption allowance is higher, the exemption is capped at $136, 875 if the residency requirement is not met. After 40 months, the applicable state exemption applies.
