Holding Onto Your Property in Chapter 7 Bankruptcy

While the bankruptcy process can be daunting, by working with the right bankruptcy attorney and having a basic understanding of how the process works, it is possible for the process to provide relief from debt while allowing you to hold onto your assets

While Florida opts out of federal bankruptcy exemptions, the state has its own exemptions that need to be claimed when Chapter 7 bankruptcy is filed. As a result, it is critical that you work with an experienced Florida bankruptcy attorney in order to ensure that you meet all of the relevant requirements.

Chapter 7 Bankruptcy

Under Chapter 7, debtors typically have to liquidate some of their assets as a condition for clearing debts and making some payments to creditors. Chapter 7 bankruptcy often makes the most sense where you might have, for example, credit card or medical bill debts. The process can take between one and six months and wipes away all of this debt. It can remain on your credit report for up to 10 years (starting when it is filed).

Homestead Exemption

A permanent resident of Florida and, in order to meet the requirements for bankruptcy exemptions, you must have lived here for at least 730 days before filing the petition, and you must have owned the property for at least 1,215 days before filing the petition. Under Chapter 7 bankruptcy, you can claim an exemption for equity in your home or other real estate under the homestead exemption if they qualify. The exemption under home equity allows you to make a claim for the equity in the property (or the difference between the market value of the property and debt still owed on it).

Other Exemptions Available in Florida

  • Disability benefits
  • Health savings accounts
  • Most retirement accounts
  • A certain amount of personal property – Florida also has what is known as the “wildcard exemption,” which allows you to protect additional personal property, but only if the homestead exemption is not used
  • A certain amount in equity on vehicles

Jacksonville, Florida Bankruptcy Attorneys on Your Side

Struggling with debt can be exhausting and stressful. Regardless of how hard you work, it can be beyond difficult to catch up, and circumstances can lead to what feels like a domino effect of disaster.

At Adam Law Group, we are committed to helping you get through this process. Know that there is a light at the end of the tunnel: Contact us today for a free consultation to find out more.