The 1,215 Day Rule versus the Federal Exemptions. Which Law Protects Your Home in 2026?

Over the last two posts, I’ve covered two very different federal numbers: the $214,000 Homestead Cap and the $31,575 Federal Exemption.

If you’re confused, you aren’t alone. Even experienced practitioners sometimes mix these up. This post will compare the federal homestead exemption with the bankruptcy exemption and explain when each applies in your case.

By Alexander Hernandez, J.D., Professor, and Author of Consumer Bankruptcy Law (Routledge).

The Comparison Table: The 1215 Day Federal Cap on Your Home’s Equity vs. the Federal Exemption

Feature	The 1,215-Day Cap (§ 522(p))	The Federal Exemption (§ 522(d))
2026 Amount	$214,000	$31,575 ($63,150 for joint filing)
The Function	It is a CEILING. It limits state laws.	It is a FLOOR. It is your protection.
When it applies	When you use State Law but moved recently.	When you choose to use Federal Law (varies per state).
The Goal	To stop “Mansion Loophole” abuse.	To provide a basic safety net for equity.
Trigger	Buying a home < 40 months before filing.	Choosing the federal exemptions.

Scenario A: The “New Resident” Problem

Imagine you move from New York to Florida, buy a home with $500,000 in equity, and file for bankruptcy 12 months later. Florida law says homesteads are “unlimited” so this seems like a great idea, but that’s where the 1,215 day day rule comes into play.

Result: You can only protect $214,000. The other $286,000 is vulnerable to the trustee.

Scenario B: The “Choice State” Strategy

Imagine you live in a state like New Hampshire or New York that allows you to choose between state or federal law. Suppose you have $30,000 in equity in your home. Your state’s exemption might be lower, or maybe you want to use the federal “Wildcard” to save your cash savings.

Result: You choose the Federal Exemption. You protect your full $31,575 in equity, and the 1,215-day “cap” never even enters the conversation because your equity is well below the ceiling.

Why the Distinction Matters

As I noted in Consumer Bankruptcy Law, the complexity of these rules is often where cases are won or lost. If a debtor in Florida mistakenly thinks the $214,000 “cap” is an “exemption” they are entitled to, they might file a case and realize too late that they don’t meet the residency requirements to even use Florida law in the first place. This puts their home at risk of being sold by the bankruptcy trustee.

The Professor’s Checklist Before Filing for Bankruptcy

1. Check your residency: Have you lived in your current state for 730 days? If so, you can apply the exemption limits of that state. If not, you have to apply the exemptions of your prior state of residence.
2. Check your home ownership: Have you owned that specific home for 1,215 days? If yes, you will apply your state’s homestead bankruptcy exemption.

Check your state’s “Opt-Out” status: Does your state allow the choice between state or federal exemptions? If so, analyze which option better protects your assets, including your home, as you would have to pick one or the other. The state and federal bankruptcy exemptions cannot be mixed and matched.

Colleges and universities can purchase my bankruptcy law textbook directly from Routledge Publishing. Paralegals and students who are buying single copies can do so via Amazon Books. To access my YouTube channel, click this link.

You can learn more about filing for bankruptcy and the bankruptcy petition via this link. Information on the bankruptcy court system, contact information for trustees, and your state’s exemptions can be found here. The federal bankruptcy exemptions are listed here. The latest version of the 341 Meeting of the Creditors can be found here.

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Please note that the information on this site does not constitute legal advice and should be considered for informational purposes only.