Thursday, August 1, 2013

Will I Loose My Home If I File Bankruptcy?

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So, you are trying to relieve yourself of debt so you can move on with the rest of your life. You are also putting off the bankruptcy because you heard from someone you will loose your house you have so diligently been paying for over the years, you should seek the advise of a competent bankruptcy attorney that practices in the area in which you live.
 
I receive calls on a regular basis asking if they are going to loose their home if they file bankruptcy.  In some cases, they are telling me they can not file because they do not want to loose their home.  If you are one of these people, don't feel bad, as I even have other attorneys asking questions related to this topic that seem to somehow be cloaked in a whirlwind of misstatements.
 
The Answer: well, that depends on where you file, and the value of your home. 

That is, unless you file in Florida, where the light shines (I know, cheesy right?).

This blog is directed towards debtors filing if Florida, as that is where I practice.  As a general rule, if you have homestead property in Florida, that is, real property that is exempt from creditors claims pursuant to the Florida Constitution, then you can claim a homestead exemption on Schedule C of your bankruptcy, and keep you home. 
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So, what happens if you live in a mobile home?  If you live in a mobile home, and do not own the land under it, you may have to wait a couple of years after moving to Florida in order to claim an exemption, as this is a statutory rather than constitutional exemption that needs to be claimed. 

As a side note, if you are planning on moving to another state, you should speak with bankruptcy attorneys in both the state you are moving from, and the state you are moving to, about where you should file bankruptcy. There may be significant advantages in filing in one state over another. This should be done well before moving, in order to arrange for proper planning.

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1 comment:

  1. I read your blogs regularly. Your humoristic way is amusing, continue the good work! BLC Law Center

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