Under the Bankruptcy Reform Act, the "mansion loophole" increases the homestead exemption for debtors.

Name: Under the Bankruptcy Reform Act, the "mansion loophole" increases the homestead exemption for debtors.
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The "mansion loophole" refers to a provision that allowed debtors to protect expensive homes from creditors by moving to states with high homestead exemptions, but the Bankruptcy Reform Act of 2005 aimed to limit this by imposing a cap on the exemption if the property was acquired recently.

Under the Bankruptcy Reform Act, the "Mansion Loophole" Increases the Homestead