Moved recently? where to file?

The first change is the residency requirement for exemptions. Under the revised § 522(b) (3), the state or local law where the debtor has resided for the past 730 days governs the debtor’s exemptions. If the debtor has not resided in the state for the past 730 days, then the law of the jurisdiction where the debtor resided for the greater part of the last 180 days before the 730 day period is the law governing the exemptions. If this new residency rule creates a situation in which the debtor is ineligible for any exemption, then that debtor may select the federal exemptions under § 522(d), even if that state has opted out of the federal exemption scheme.

well that should be titled, what exemption to file. (not where to file)

i was fuzzy on these change. but it seems that:

if you havent moved within the last 2 years (730 days) then file using the exemption in that region.

if you have moved then then you file using the exemptions for the region in which you lived the most during the 6 months prior the the recent 2 years.

if you end up with no exemptions then you get to use federal exemption. im been unclear about how the federal exemptions kicked in or couldnt kick in before under the old law.

anybody know how it works? when couldnt you use federal exemption if you wanted to? i thought they were your choice?

TY for that nice little post, BK.

The new state we live in is an "opt out" state. We specifically asked attnys about the Federal Wild Card since we'd seen it mentioned here. They all said, "No such thing." Then we found out that this state does not recognize the Federal exemptions except in very certain areas with specific references to Federal codes.

Good info for us unestablished folk to know!

here is the entire context:

QUESTION:

How will the new federal exemption effect the states exemption and the second part how do you see the impact of the Kipp v. Sweno, No. CX-03-140 ( Minn. 06/24/2004)


ANSWER: Jeffrey W. Morris (ABI Resident Scholar):

The first change is the residency requirement for exemptions. Under the revised § 522(b) (3), the state or local law where the debtor has resided for the past 730 days governs the debtor’s exemptions. If the debtor has not resided in the state for the past 730 days, then the law of the jurisdiction where the debtor resided for the greater part of the last 180 days before the 730 day period is the law governing the exemptions. If this new residency rule creates a situation in which the debtor is ineligible for any exemption, then that debtor may select the federal exemptions under § 522(d), even if that state has opted out of the federal exemption scheme.

Section 522(p)(1) of the Revised Code places a cap on homestead exemptions for property acquired during the 1215 days prior to the commencement of the case, unless the property was transferred from the debtor’s previous residence located in the same state.. Section 522(q) sets a cap on exemptions if the debtor has been convicted of a felony that makes the filing an abuse of the Bankruptcy Code or the debtor owes debts from a variety of other acts of wrongdoing during the prior 5 years. The § 522(q) cap does not apply, however, if the full homestead exemption is necessary for the support of the debtor or the debtor’s dependents.

well that should be titled, what exemption to file. (not where to file)

i was fuzzy on these change. but it seems that:

if you havent moved within the last 2 years (730 days) then file using the exemption in that region.

if you have moved then then you file using the exemptions for the region in which you lived the most during the 6 months prior the the recent 2 years.

if you end up with no exemptions then you get to use federal exemption. im been unclear about how the federal exemptions kicked in or couldnt kick in before under the old law.

anybody know how it works? when couldnt you use federal exemption if you wanted to? i thought they were your choice?

Some states say in their Codes/Statutes, that filers cannot use Fed Exemptions. Missouri is an "opt out" state except in certain areas referenced by specific code. The new state is that way too.

I thought,........... Since we'd only been here 6 months, we HAD to use the old state's exemptions. Can't use this state because we haven't been here 2 years. But if the law really isn't worded clearly, maybe the attnys aren't sure which exemptions apply to us. This may be the very reason attnys are telling us "No" when they hear that we're from outa state.

One of the attnys who turned us down is the daughter of one of our Trustees. Her assistant said she didn't "have time to deal with the out of state stuff." At the time she said No we thought "whatever that means" cause we thought it would be simple. I can even give attnys a link to the MO BK Statutes. All they have to do is read for gosh sakes.

Hmm, never thought about this. I just moved back to Florida ( i was originally from here but was out of the state for afew years) I moved back in August.

I asked the lawyer how long I had to be here he told me 90 days. So basically from how I'm reading what this is saying I have to use my OLD states exemptions? If so, that will be better for my car situation as my old state allows like 3k compared to 1k of Florida.

yeah im kinda stumped here too. i think many people will be. its just one persons thought reflecting on the questions asked about new laws.

i kinda think we need many more posts and research to determine the truth. i posted it as a conversation/research starter like most things i post. if you find comments elsewhere then please post them in here.

and what about exemptions for where you lived and IRS standards used for current expenses?

my thinking is the expenses in the means test will be compared to current living situations for the spot where you resided the greater of 6 months (i.e 90 days)

ive posted on this before - the logic might be that exemptions are used to keep your items that are typicall longer term collection of things so are based on a longer term 'where have you been' values. this is so debtor cant move to keep more things.

whereas, your living expenses are set in stone and apply right away the moment you move into the area. you cant cheat on those by just moving into a new state.

Well once my vehicle is sold and I use the money I will be filing, so hopefully I will be able to follow up on this situation.