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Do you automatically lose your home if you file for bankruptcy?

On Behalf of | Feb 16, 2022 | Avoiding Bankruptcy

As a Florida homeowner, you may have concerns about having to turn over your home if you decide to file for bankruptcy. While this is a possibility, it is not definite, and there are a number of factors that go into determining whether you are able to keep your house after a consumer bankruptcy filing.

According to U.S. News & World Report, one of several factors that determine if you get to keep your home when you file for bankruptcy is whether you initiate a Chapter 7 or a Chapter 13 bankruptcy proceeding.

Your home and Chapter 7 filings

In many states, you may have to give up your home when you file for personal bankruptcy. However, this is not typically the case in Florida. Florida has a generous and unlimited homestead exemption. This means that as long as you owned the property for a specific length of time and the property is of a certain size, you should not have to surrender it in a Chapter 7 bankruptcy.

Your home and Chapter 13 filings

When you file for Chapter 13 bankruptcy, you may, in most cases, keep your home regardless of what state you live in, as long as you meet certain conditions. In a Chapter 13 bankruptcy, you reorganize your debts so that they become more manageable. If you stay on top of them and make your mortgage payments on time, you should not have to move out of your home.

As a Florida homeowner who files for bankruptcy, you are in a unique situation. You may be able to keep your home after navigating the bankruptcy process, regardless of which filing type you pursue.

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