BAPCPA cap on homestead exemption

combined cap on homestead exemption + 'safe harbor' cannot exceed state homestead exemption

In re Summers, 344 B.R. 108 (Bkrtcy.D.Ariz. 2006) Where debtors acquired home within 1,215 days before filing petition but part of the purchase price came from sale of a previous homestead acquired earlier than 1,215 days before filing, debtors argued that the "safe harbor" provision of §522(p)(2)(B) provided that the $125,000 cap does not apply any of the equity in their home. The court disagreed, saying the Code puts a cap of $125,000 in equity on the home purchased within 1,215 days before the filing, including the equity that came from the sale of a home purchased beyond that period, but the combined exemption could not exceed the $150,000 homestead exemption provided under Arizona law. In doing so the Court distinguished the contrary outcome in the case of In re Wayrynen because the Florida homestead exemption is unlimited.