Bankruptcy: Limitations on Exemptions for Non-Immigrant Aliens

    Individuals residing in the United States on a temporary visa (non-immigrant aliens) who file for bankruptcy in Florida are not entitled to the favorable Florida exemptions, such as the homestead exemption.

    Individuals filing for bankruptcy relief are entitled to exempt certain property pursuant to state law.  The state law that determines the applicable exemptions is the law of the debtor’s domicile for the 180 days immediately preceding the bankruptcy filing or for a longer portion of such 180-day period than in any other place.  

    Florida courts have held that aliens in the United States on temporary rather than permanent visas are incapable of formulating the requisite intent to establish a permanent residence, or domicile, in Florida.  Accordingly, in cases where the debtor is an individual residing in Florida on a temporary visa (non-immigrant alien) he/she is not entitled to claim any of the favorable Florida exemptions, such as the homestead exemption.  Non-immigrant alien debtors are only entitled to claim the limited exemptions listed under 11 U.S.C. § 522(d) or those allowed under Federal law.

    For more information regarding the above mentioned exemptions in bankruptcies, contact Eugenia Chu, Attorney, at 305-379-9000 or email her at echu@kpkb.com.