The Inequitable Situation: A Look at the Bankruptcy Homestead Exemption after Five Years of Judicial Interpretation

Explains how the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA), demonstrates how courts currently interpret the new homestead exemption cap, and offers a solution to the problems created by the court's interpretations. Part I gives a basic explanation of bankruptcy law, the BAPCPA, and includes a brief explanation of the bankruptcy exemptions along with the history and purpose of the BAPCPA. Part II explains and examines difficulties courts have interpreting the homestead exemption in the BAPCPA by introducing the two principal arguments the courts use to interpret the provision-"title" and "equity." Part III walks through the relevant case law that demonstrates the strengths and weaknesses associated with each interpretation. Finally, Part IV proposes legislation that will solve the problems with interpreting the statute. Ultimately, this comment concludes that amending the statute is the best way to solve the problems encountered by courts and presented by scholars.