When people consider filing for bankruptcy, one of the first questions our law firm often hears is whether they’ll be able to keep their home and other major assets. The home is of great concern for those who are facing large amounts of debt, since other housing options can be difficult to come by when you’re already struggling with your finances.
The state of Florida is one of the best to live in when it comes to filing bankruptcy. This is because Florida has a very generous allowance called the homestead exemption.
What is a bankruptcy exemption?
In a nutshell, bankruptcy exemptions are the laws that are put in place to protect your property and assets in a bankruptcy. These exemptions vary by state and an individual’s situation, and can sometimes even protect property and assets if bankruptcy is not filed.
Some bankruptcy exemptions include:
What is the Florida Homestead Exemption?
Simply put, the Florida homestead exemption is a big “Yes!” to the question, “can I protect my home if I file for bankruptcy”. Real property that is used for the consumer’s primary residence can be exempt from any creditor’s levy and allows you to keep your primary residence so long as you meet the Florida Statutory requirements.
Regardless of the type of Bankruptcy you may file, so long as your homestead is a half acre or less in the city limits or 160 contiguous acres in the county, you are entitled to an unlimited equity exemption for the value of your homestead.
A skilled bankruptcy attorney will be able to best advise you how the law applies to your homestead when analyzing what type of bankruptcy is best and how it may impact your homestead exemption.
How is the Florida Homestead Exemption Used In Bankruptcy
If you are currently on the loan for your home or if your home is not encumbered by a mortgage, and you meet the other requirements for Ch. 7 then you will be able to keep your home and land without any worry for the other debts that are outstanding.
If you are behind on your home mortgage or you otherwise do not qualify for a Ch. 7, then your attorney may consider using a Ch. 13 bankruptcy to address the issues that have arisen in your situation.
Regardless of your situation, do not be fooled by creditors and naysayers. If your home meets the FL constitutional protections, they cannot take your home. This simple fact gives countless people peace of mind every day.
If you are unsure whether or not your home qualifies for this exemption, it always helps to consult with a professional bankruptcy lawyer before filing.
The experienced team at Wynn Law Firm are knowledgeable with the homestead exemption and understands the right way to apply it to any bankruptcy case. For more information and to consult with our experienced bankruptcy attorneys, contact us today!