The Homestead Exception in Bankruptcy Proceedings
One of my clients' main concerns when filing for bankruptcy is what will happen to their home. The most recurring question during the first consultation is: will I lose my property if I file for bankruptcy? In today's blog we will be answering this question. The explanations that we will be giving below constitute the current law of the state of Florida, if you are a resident of another state, contact an attorney licensed to practice in your state of residence, as the laws may be different. What is the Homestead exception protection? The Homestead exemption or Homestead exception allows the debtor who files for bankruptcy to protect his principal residence (Homestead) from being affected by unsecured creditors. It should be noted that this protection does not apply to the creditor who owns the mortgage. This means that during the filing of your bankruptcy your main residence will not be affected, if you comply with the requirements that we will describe below. First, it is necessary to emphasize that to be a beneficiary of the Florida Homestead laws, the person filing the bankruptcy must have resided in the state in the 180 days prior to the filing of the bankruptcy process. If this is not the case, the law applicable to your process will be the law of the state where you have resided in those last six months. What are the Homestead exception requirements? The Homestead exception in Florida is unlimited, as long as you have resided in the home for the past forty (40) months, this is your primary residence, and the home is less than half an acre if it is located in a municipality.; or less than 160 acres if located elsewhere. This means that your house will be protected and will not be considered when it comes to satisfying the debts to your creditors. If for any reason, you have not met the residency requirements in the past forty (40) months, the Homestead exception will be only $ 160,375. If it is a married couple that applies for bankruptcy, and they do not meet the requirements of the time of residence, this value could be doubled, since the exception will be applied for each of the debtors. Understanding how to protect your home in a bankruptcy proceeding is a delicate matter and requires the necessary knowledge to do so. In Y. Morejon Attorney, P.A. we can help you with your bankruptcy process. Let us help you get rid of debt and start a new financial future, safeguarding your interests. Call us now to schedule your first free consultation. Here, your problem is our problem.
Legal Disclaimer Any information made available by the lawyer or law firm is for educational purposes only, as well as to give you general information and general understanding of the law, NOT to provide specific advice. This does NOT create a relationship attorney-client between you and Y. Morejon Attorney, P.A. This information should NOT be use as a substitute for competent legal advice from a licensed professional attorney in your state.