As a Florida resident faced with overwhelming debt, you may be living in a constant state of anxiety, and you may have concerns ranging from how you will keep food on the table to whether you will be able to keep a roof over your head. You may, too, be considering filing for bankruptcy as a potential method of getting back on your feet, but you may have questions about whether you run the risk of losing your home, should you do so.
According to the Washington Post, most people who file for consumer bankruptcies do so through a Chapter 7 format. By filing for Chapter 7, you are essentially saying that you do not have enough money at your disposal to stay afloat, financially, and pay back debts you currently owe. In some cases, people who file for a Chapter 7 bankruptcy do lose certain assets, but losing your home is not an inevitable part of the process.
Instead, whether you will lose your home when you file for bankruptcy ultimately depends on how much equity you have in your home, and whether the amount of equity you have is lower than the exemption amount Florida allows. If the equity you have in your house is lower than Florida’s exemption amount, you should be able to hang on to your home. If, however, the amount of equity you have in your home is higher than Florida’s exemption amount, you may have to forfeit your home to help pay off your debts.
This information about whether you will lose your home after filing for bankruptcy is educational in nature and not a replacement for legal advice.