Bankruptcy and protecting your home: Part II
Even though bankruptcy may be the best option for countless Florida families struggling with debt, many avoid the idea all together – often because of the mistaken belief that they will lose everything they own, including their home.
However, bankruptcy is not meant to be a punishment, but a new start. In fact, thanks to Florida’s homestead exemption, many Floridians who file Chapter 7 bankruptcy are able to protect their homes.
Essentially, bankruptcy exemptions are legal tools you can use to safeguard certain assets during bankruptcy. In the case of the homestead exemption, Florida law is quite advantageous. In fact, while some states place a dollar limit on the homestead exemption, Florida is one of the few states that does not – meaning you can protect an unlimited amount of market value or equity in your home when filing a Chapter 7 bankruptcy.
However, there is one limitation you should be aware of: the land size of your homestead. For example, Florida’s homestead exemption is limited to:
- One-half acre if the property is located in a municipality
- One hundred and sixty acres if the property is located outside a municipality
It is also important to keep in mind that other rules may apply if you purchased your home within the last few years. To learn more, including whether bankruptcy is the best option for you and your family, contact an experienced bankruptcy lawyer today. Your home and financial future are too important to sit idly by, so take the first step and call a lawyer today.