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Orlando Attorney Lewis Roberts

Florida Homestead Exemption in Chapter 7 Bankruptcy

Florida Homestead Exemption in Chapter 7 Bankruptcy

When someone comes into my office for the first time considering Chapter 7 bankruptcy, they often have plenty of questions, particularly once we start discussing exemptions. Florida has some unusual exemptions compared to other states. As a result, a frequent inquiry I receive is, “What is the Florida homestead bankruptcy exemption?” This is one of the most meaningful exemptions, potentially worth tens or even hundreds of thousands to the debtor. If you are considering bankruptcy, here is what you should know about this valuable exemption.

How the Homestead Exemption Works in Chapter 7 Bankruptcy

In any type of bankruptcy, whether Chapter 7 or Chapter 13, you are allowed to most assets and belongings after the bankruptcy is complete.

For example, one of the most important assets that you might be able to keep is your home and the land it is on. If you are eligible for the homestead exemption, your home and the property it ison are generally considered exempt. This means that you will continue to own it after filing for Chapter 7 bankruptcy.

Your home is probably worth more than all of your other possessions combined. Florida allows you to keep that home after bankruptcy in almost every situation.

Eligibility Requirements

It is relatively easy to become eligible for the homestead exemption in Florida. For an unlimited exemption in value, you need to have owned your home for at least three years and three months (1,215 days).

Exceptions and Limitations

Another limitation is the size of your property. If your home sits on more than half an acre of land in a municipality or more than 160 acres of land elsewhere, you won’t be able to completely claim this property as exempt. Finally, you can’t claim property if it is owned by anything other than a natural person. So if your home is owned by a trust, a partnership, or an LLC, you might not be able to use this exemption.

Are you considering filing for Chapter 7 bankruptcy in Florida? Make sure you keep as much property as possible after the bankruptcy proceedings, and contact my law firm at (407) 749-0080 to learn about your legal options.

The Impact of the Homestead Exemption on Other Exemptions

Surprisingly, it isn’t always the right decision to take the homestead exemption. When you take the homestead exemption, it affects another exemption: the wild card exemption. The state doesn’t allow you to claim both exemptions at the same time. By taking the homestead exemption, you surrender the wild card exemption and can only claim $1,000 — or $2,000 if married — in miscellaneous personal property exemptions. The wild card exemption quadruples that value.

In some situations, taking the wild card exemption may be more valuable. For example, if you are not keeping your home. Alternatively, if there is some property worth a few thousand dollars that is more important to you than your home, the wild card exemption may be the better choice.

While the homestead exemption can have a high value, it can also be worth almost nothing in specific circumstances. You should carefully evaluate how much benefit you will get from it compared to the wild card exemption.

Steps to Take to Protect Your Homestead in Florida

If you suspect that you are going to have to declare Chapter 7 bankruptcy, I will help you verify that your home will be exempt.

The homestead exemption in Florida is exceptionally generous. While other exemptions allow you to keep portions of your savings, you can keep property with as much value as possible with the homestead exemption.

If your home is fully or mostly paid off, this exemption could be worth hundreds of thousands of dollars. Even if you decide to sell your home after declaring bankruptcy, that will put you in a good position to restart your finances. Protecting your ability to claim this exemption should be one of your biggest goals leading up to filing for Chapter 7 bankruptcy.

Call Lewis Roberts, PA, to Learn More About the Homestead Exemption

Your home is your castle. One of the most common reasons that people are hesitant to declare bankruptcy in Florida is that they are worried they will lose their home. As a bankruptcy lawyer, I strive to help people keep the property that is most important to them.

If you are in financial trouble, bankruptcy might be the answer for you. Contact my law firm at (407) 749-0080 to learn more about the benefits and whether I can help save your home.

Bankruptcy Lawyer Lewis Roberts

Attorney Lewis Roberts

The weight of debts that one cannot pay carries financial stress into every waking moment. It is time for this to end. Lewis Roberts, PA, offers solutions to relieve these worries. With over 20 years of experience in helping individuals overcome the burden of debt, bankruptcy attorney Lewis Roberts presents a range of options tailored to each unique situation. Clients can trust his advice on any matter related to debts, as he identifies appropriate options and explains the paths to debt relief clearly and carefully. This ensures that clients make the best decisions for their future. [ Attorney Bio ]