Bill Nelson: “the Florida Constitution grants the citizens of my State unlimited protection of the equity in their homes. I think we…”

“the Florida Constitution grants the citizens of my State unlimited protection of the equity in their homes. I think we can all agree that this provision was not created so that wealthy, non-resident debtors could escape their obligations. The provision was created because the people of my State understood the importance of preserving a debtor's most essential asset, their home. I do not think that a previously wealthy person should have the right to purchase a very expensive home in order to shield his remaining assets from creditors, and I do agree that we must address homestead abuse. But, we should not take away the homes of innocent debtors who have worked hard to build equity in their homestead. The median income of debtors in bankruptcy is $22,000 per year. Working people in that income range do not have the ability to shelter a significant amount of money in a home. My State has many retirees from around the country. Many have worked their entire lives to own their own home and under the Kohl amendment they may lose their residence even though they fell into hard times through no fault of their own. Forcing a bankrupt retiree out of her home simply because she has more than $125,000 in equity does not meet any standard of fair play. The $125,000 cap proposed by this amendment does not adequately represent the value of homes in Florida today and certainly will not reflect the value of homes five years from now.”