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.