- November 30, 2023
- Thomas Adam
- Bankruptcy
Bankruptcy is a common occurrence. In fact, there were almost 400,000 bankruptcies filed nationally last year. If you are behind in your bills and are not able to meet your financial obligations, you may be considering bankruptcy. Bankruptcy can provide you with a fresh start that will allow you to reset your finances and get out of debt. Many people wonder whether they will be able to keep their homes if they file for bankruptcy. A knowledgeable Florida bankruptcy attorney will answer your questions and assist you through the bankruptcy process.
Benefits of Bankruptcy
Bankruptcy offers some benefits, depending on your financial circumstances. One of the most significant benefits you may have is the ability to prevent foreclosure on your home. If you are behind on your mortgage payments, the lender may begin steps to foreclose on your home. If you can’t resolve the matter, you could end up losing your home to the bank. If that happens, it will severely impact your credit, and you will likely have difficulties being able to get a home loan for a period of time in the future.
How Much Equity Do I Have in My Home?
When you file bankruptcy, all your property is part of your estate. However, there are some exceptions that allow you to keep some assets. Florida law allows you to protect some of your property in bankruptcy, including your home in some cases. You will need to determine the amount of equity you have in your home. In general, the law protects at least some of the equity in your home. If you owe less than your home is worth, you have accumulated equity. If you do not have equity in your home, you will not be allowed an exemption.
Florida Bankruptcy Exemptions
Florida law provides for a variety of exemptions when filing for bankruptcy. One of the exemptions that pertain to home ownership is the homestead exemption. The homestead exemption allows a homeowner with equity in their home an unlimited exemption. This means that if you file Chapter 7 bankruptcy and have equity in your home, you will be able to keep your home out of the bankruptcy process.
Filing bankruptcy will stop the immediate foreclosure of your home. Chapter 7 bankruptcy will allow a Florida homeowner who has owned the property for a minimum of 1,215 days an exemption for their home. Chapter 13 bankruptcy is different in that you will be repaying your debts under a repayment plan. In Chapter 13, you will only need to repay the non-exempt portion of the property as part of your repayment plan. You must be able to show that you have the necessary income to afford the payments.
Consult an Experienced Bankruptcy Attorney
If you own a home, you will want to consult with an experienced bankruptcy attorney to determine the best way to handle your financial situation. At Adam Law Group, we have extensive experience working with clients in handling their bankruptcy. You do not need to live with the stress of financial problems. Contact us at Adam Law Group at (904) 822-4595 to request a consultation.