St. Thomas Law Review
First Page
305
Document Type
Article
Abstract
The United States Constitution empowered Congress to establish uniform bankruptcy law throughout the land. Instead, Congress allowed states to opt out of federal exemptions and permitted state law exemptions to be used. Consequently, a person residing in a debtor's haven such as Florida or Texas, may seek a fresh start with a hundred million dollars or more in exempt property. Meanwhile, other debtors who happen to reside in states which are not a debtor's Garden of Eden begin their fresh start with only five thousand dollars. This structure is grossly unfair and leads to the inequitable proposition that indeed, there is not equal justice under bankruptcy law throughout the land. Adding to this quagmire, the United States Supreme Court, in an unnecessary extension of a ruling, broadened debtors' exemption opportunities far beyond the generosity of Florida or Texas. In Taylor v. Freeland & Kronz, the Court created a vehicle wherein debtors may load up non-exempt property, and with a little cosmetic scheduling, drive it across the line into the wonderful world of exemptions. And even better, if the effort fails, there is no penalty. This article will address bankruptcy exemptions and the repercussions of the Supreme Court's decision in Taylor.
Recommended Citation
A. Jay Cristol & Alexander Sarmiento Walden,
Bankruptcy Alchemy: Conversion of Nothing to Golden Opportunity,
9
St. Thomas L. Rev.
305
(1997).
Available at:
https://scholarship.stu.edu/stlr/vol9/iss2/3