Dianne Feinstein: “I rise in support of the Kohl- Feinstein amendment to cap the homestead exemption at $125,000 for all States, and to…”

“I rise in support of the Kohl- Feinstein amendment to cap the homestead exemption at $125,000 for all States, and to eliminate from our bankruptcy laws a loophole so large that you could fit a $50 million mansion right through it. This amendment will correct a longstanding discrepancy between the States, a discrepancy that on the one hand forces most debtors to struggle to pay back every dime they owe, but on the other hand allows many of the most ``wealthy'' debtors declaring bankruptcy to shield their assets in multi-million dollar homes. The discrepancy I speak of occurs because in five States, Florida, Texas, South Dakota, Iowa and Kansas, where debtors are allowed to keep their homes no matter what they owe, or to whom they owe it, and no matter how much the home is worth. The ``homestead'' laws in these five States differ radically from the other 45: Many States have virtually no homestead exemption at all. In Michigan, for instance, the cap is $3,500; in Pennsylvania, just $300.”