First, you need to know, your home is protected when you file bankruptcy in Florida.
A common question we hear from clients coming in to discuss filing for bankruptcy is, “will I be able to keep my home in the process?” Some may already be facing foreclosure, while others may be managing their mortgage payments fine, but do not want to risk losing their home in bankruptcy.
The good news is that bankruptcy protections exist that allow filers to keep the things they need to work and live. For example, homes, cars, furniture, etc.
When we prepare a bankruptcy petition we list in the Statement of Intentions that the client is KEEPING THEIR HOME. We take a second step and protect the home in the bankruptcy schedules. This is why getting an experienced lawyer that handles this all the time is important. Nothing is more important to us than protecting our client’s property.
The fear of losing your home is one of the most common bankruptcy myths. In fact, the majority of our clients do not lose anything, thanks to Florida’s generous bankruptcy exemptions. Most Chapter 7 cases are ‘no-asset cases,’ which means you do not have to turn over any property or cash to the bankruptcy trustee. Your home, car, retirement savings, social security, pension, and more- are all protected in bankruptcy.
Protections of the Bankruptcy Automatic Stay
The first protection offered through a bankruptcy case comes in the form of the automatic stay. The automatic stay puts a pause on all collection efforts you may be facing before filing, including foreclosure proceedings on your home. The proceedings can only keep moving forward if your lender is successful in requesting that it be lifted. This gives you the chance to catch up on any past due payments on your home.
In consumer bankruptcy cases, you have two different types of property: exempt property and nonexempt property. If you are filing a Chapter 7 bankruptcy case, otherwise known as a liquidation bankruptcy, the bankruptcy trustee will sell your nonexempt property to pay off qualifying creditors. Every state has its own set of laws with respect to what property is considered exempt, and our state happens to be one of the more generous ones. The State of Florida allows you to claim an unlimited amount of equity in your home as exempt property, which means your home is not going to be sold and used to pay off your creditors in a liquidation bankruptcy.
If you have questions on this topic or are struggling with debt, call our law firm today to schedule a free consultation. Having debt makes you stay up at night. It stresses you out. It ruins relationships. I went through it. Boldly, I mustered up the courage to call a bankruptcy attorney and I pressed the restart button in 2008. I never forgot what it did for me and how it helped me start over.
It even inspired me and my law firm to become the largest filers of bankruptcies in the country. The Benenati Law Firm has eliminated nearly a billion dollars of debt for its bankruptcy clients.
Remember, we are local in your hometown. We make our hours convenient for our clients and will work with you when you are available. Go to https://www.407bankrupt.com/ or call 407-777-7777 to set up a free private consultation. Because Life Has a Restart Button.