Intending to reside permanently in the U.S. won’t qualify someone for a Florida homestead exemption unless the debtor is entitled to permanent residency.
The debtors’ lawyer’s lack of diligence allowed the creditor to invoke laches and beat a belated motion to avoid a lien that impaired a homestead exemption.
The Ninth Circuit BAP explained that debtors may claim exemptions under the law of the state where they are domiciled, which may not be where they filed or reside.
Even if the two-year statute of limitations for avoidance actions has run, the trustee can still strip away the lender’s secured status in a claim objection.
