Opinion ID: 2542857
Heading Depth: 3
Heading Rank: 3

Heading: Otherwise Receiving the Benefits

Text: In the foregoing analysis, we have explained that the only benefits referred to in section 222.25(4) are protections of the homestead against forced sale and levy and that by not claiming the article X, section 4, homestead exemption, a debtor in bankruptcy may lose that protection. This does not mean, however, that every debtor who does not assert the homestead exemption in bankruptcy is not receiving the benefits of the exemption. As several courts have explained, each case must be decided on its own facts because the debtor in bankruptcy may still receive the homestead exemption's protections despite failing to assert the homestead exemption. In re Bennett, 395 B.R. at 790 (A debtor who does not claim the Homestead Exemption may still receive its benefits in certain limited circumstances that can only be determined on a case-by-case basis, after a fact-intensive inquiry.). For example, in Hernandez, the debtor husband filed individually for bankruptcy and claimed entitlement to the section 222.25(4) personal property exemption. In re Hernandez, 21 Fla. L. Weekly Fed. at B299. The trustee objected, arguing that because the husband's nondebtor spouse retained the right to the homestead exemption, the debtor continued to receive the benefits of the homestead protection against creditors as well. The bankruptcy court determined that the wife's retention of the homestead right would prevent the trustee from administering the TBE [tenants by the entirety] property to pay any joint creditors, which in turn meant that the Debtor is receiving the benefits of the constitutional protection by shielding TBE assets from the reach of his joint creditors. Id. at B300. Accordingly, the court held that the debtor could not claim the statutory personal property exemption. In light of the potential for debtors in bankruptcy who do not assert the homestead exemption to nevertheless receive its benefits, we do not hold that a debtor's not claiming the homestead exemption in bankruptcy is sufficient evidence that a debtor is not receiving the benefits of the homestead exemption to allow a debtor to claim the section 222.25(4) personal property exemption. Consideration of the facts in each case to determine whether a debtor is otherwise receiving the homestead exemption's legal benefits is necessary to ensure that the statutory personal property exemption is available only to those who meet the statute's terms.