The homestead exemption is the largest single exemption in most bankruptcy cases. This research project tracks how homestead exemptions are claimed, the geography of homestead protection, and the empirical effect on case outcomes.
Across the ~270,000 consumer bankruptcy filings annually post-pandemic, the homestead exemption is claimed in approximately 40-50% of cases (rough estimate; varies by district). The fraction is higher in homeowner-heavy regions (Midwest, South) and lower in renter-heavy regions (Northeast, urban West).
| Tier | States | Effect on filings |
|---|---|---|
| Unlimited (acreage-capped) | FL, TX, KS, IA (limited) | Highest homeowner Ch.7 rate; rare forced sale |
| Generous ($75K+) | NV, CA (704), NM, AZ, MA, MN | Above-median homeowner Ch.7 rate |
| Moderate ($30K-$75K) | NY, WA, OR, IL, OH, NC, GA | Mixed Ch.7/Ch.13 patterns |
| Low (under $30K) | most opt-out states with low state caps | Higher Ch.13 rate (homeowners use plan to keep house) |
To prevent homestead-shopping abuse, § 522(p) caps the homestead exemption at approximately $214,000 (post-COLA) for property acquired within 1,215 days (~3.3 years) of filing. This applies regardless of state law — a Texas debtor who bought a house 2 years before filing is capped at the federal § 522(p) amount, not the unlimited state cap.
The cap does not apply if the debtor moved residence between two homes in the same state (the "rolled over equity" exception in § 522(p)(2)).
For joint debtors:
These are the empirical questions the OBP § 522(d) research project will address as the dataset develops.