Here are some Q and A about the topic of bankruptcy in Florida. Cheap Florida bankruptcy lawyers should be able to give you answers if you have more questions.
Moving Into Florida House Just Prior To Bankruptcy: Does It Work?
A future bankruptcy debtor bought a single family house in Florida for investment some years ago. At time of purchase the investor lived up north. In 2005 he moved to Florida, and rather than force out his renters he settled to take an apartment. He refinanced the property to take out cash during the real estate bubble. The mortgage payment had an variable rate which is about to increase significantly. With the new mortgage rate he would not have a good cash flow. There was over $125,000 of equity in the property. He asked whether he can move into his investment property and protect the house as homestead in a Ch 7 bankruptcy.
The generic rule is that Florida homestead protection in bankruptcy is limited to $125,000 for property acquired less than 1,215 days prior to declaring bankruptcy. The subject in this situation is whether the date of acquisition of the property for homestead protection is the date the debtor moves in and makes the house his homestead, which date would be within 1,215 days of filing, or the date the investor purchased the house for rental income and investment. [Source: http://www.bankruptcyorlando.com/2007/05/florida_increas.html ]
Can I Keep My Home If I File Bankruptcy in Florida?
Florida has a very generous homestead exemption for home owners. It basically allows Florida home owners to keep all of the equity in their homes when they declare bankruptcy. Homeowners can keep up to the value of 160 acres of land and the buildings and improvements on that land if they live outside of a municipality and the value of up to a 0.5 acre of land and the buildings and improvements on that property if they live in a Florida municipality. [Source: http://resources.lawinfo.com/en/Legal-FAQs/Foreclosure/Florida/can-i-keep-my-home-if-i-file-bankruptcy-in-fl.html ]
If you have given some thought to declaring bankruptcy, you can know more about Florida bankruptcy laws by speaking with local bankruptcy lawyers.
