bankruptcy debtors.pdf

United States General Accounting Office Washington, D.C. 20548 Page 1 GAO/GGD-99-142R Homestead Exemptions GAO B-283143 July 12, 1999 The Honorable Herb Kohl United States Senate Subject: Bankruptcy Reform: Use of the Homestead Exemption by Chapter 7 Bankruptcy Debtors in the Northern District of Texas and the Southern District of Florida Dear Senator Kohl: On June 18, 1999, we provided you a letter in response to your request for data on debtors’ use of the homestead exemption in chapter 7 bankruptcy cases closed in calendar year 1998 in the Northern District of Texas and the Southern District of Florida.1 On June 29, 1999, your office asked that we provide (1) further information on debtors’ use of the homestead exemption in these two districts and (2) data on the number of personal chapter 7 bankruptcy cases closed in calendar year 1998 in the remaining five districts in Texas and Florida. Specifically, your office asked that we provide information--based on our sample of closed chapter 7 cases in the Northern District of Texas and the Southern District of Florida--on the average and median amount of all homestead exemptions claimed by debtors in these districts in 1998. Further, your office asked that we provide data on the estimated average and median homestead exemptions claimed for all homestead cases closed in 1998 in each district. Table I.1 in enclosure I provides the requested data on the estimated average and median amount of the homestead exemptions claimed in each district for (1) homestead claims under $100,000, (2) homestead claims of $100,000 or more, and (3) all homestead claims combined. Table I.1 also includes the confidence intervals for our estimates. As originally requested, our June 18, 1999, letter provided data on homestead exemptions under $100,0000 and homestead exemptions of $100,000 or more. This presentation adds the combined total. Concerning the second part of your request, table II.1 in enclosure II provides data on the number