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Saturday, March 11, 2006

HOMESTEAD PROTECTION AGAINST CREDITORS IS NOT WITHOUT ITS LIMITATIONS

Subject to recent bankruptcy law provisions affecting its applicability, Florida's constitutional protection of the homestead against creditors provides extremely broad protection. It is not without its limits, however.

A recent case reminds us of one of those limits (at least in several District Courts of Appeal). In Zureikat v. Al Shaibani (5th DCA, Case No. 5D04-3697, March 10, 2006), the defendant invested the proceeds of his fraudulent acts in his homestead. In allowing the plaintiff to lien the homestead, the court noted that the proceeds of fraudulent or reprehensible conduct that are used to invest in, purchase, or improve a homestead are not protected.
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