Florida’s statutes may allow certain property owners to keep their homes during bankruptcy. As noted by Bankrate.com, a homestead exemption may protect your primary residence from creditors.
After submitting a bankruptcy petition, creditors holding your unsecured debts may not file a judgment against your home. Florida’s statutes provide a high level of protection for homeowners. By owning a residence in the Sunshine State, you may qualify for a homestead exemption.
Does ownership time, property size and location matter?
When filing bankruptcy, you may claim an exemption to protect your home’s full value if you have owned it for a minimum of 1,215 days or 40 months. When Florida residents have lived in their properties less than this time, the homestead exemption may protect up to $170,350 of its value, as noted by the Tampa Bay Newswire.
The Sunshine State generally considers a property’s location. The homestead exemption shields properties no larger than half an acre if situated within an incorporated metropolitan area. When located outside of a municipality, however, you may keep your home as long as your land does not exceed 160 acres.
Will I need to file any additional documents for a homestead exemption?
As described on The Florida Bar’s website, the court may require you to submit an affidavit to claim a homestead exemption. This document describes your property and outlines your rights related to safeguarding its value from creditors. Mobile homes may also qualify for the exemption.
Property owners experiencing financial issues may consider several options for overcoming hardship. A bankruptcy filing may allow you to keep your primary residence when you qualify for a homestead exemption.