Can I Use Florida’s Homestead Exemption?
Homeowners in Florida who have paid off their mortgages or the majority of their mortgages and are planning to file for bankruptcy often have access to the Florida homestead exemption. If you are a homeowner in South Florida and are considering bankruptcy, you might already know that Florida’s homestead exemption is among the most generous in the country, and it allows debtors to exempt all of the equity in a home. However, while debtors filing for bankruptcy in Florida must use the state’s exemptions, the homestead exemption has particular requirements that you will need to meet in order to take advantage of it. Our West Palm Beach bankruptcy lawyers can provide you with more information about eligibility for Florida’s homestead exemption.
What is the Homestead Exemption?
In order to understand eligibility for Florida’s homestead exemption and why it is so important, it is necessary to have a clear understanding of what the homestead exemption is and how it functions.
Like other exemptions, a homestead exemption allows a debtor filing for bankruptcy to exempt a portion of the equity in their home. In a Chapter 7 bankruptcy case, the exemption allows the debtor to retain the equity in their home (i.e., it is not subject to liquidation), and in a Chapter 13 case, the exemption often allows the debtor to avoid including the equity in their home when considering assets and debts to propose a repayment plan. While other states have homestead exemptions, they are limited, allowing debtors to exempt only a portion of the equity in their home, such as $5,000. In Florida, however, the homestead exemption allows a debtor to exempt all of the equity in their home — the exemption in Florida is unlimited.
Eligibility for Florida’s Homestead Exemption
If you are filing for bankruptcy in Florida and own a home, you need to speak with a lawyer to determine whether you are eligible to use Florida’s generous homestead exemption. How do you become eligible?
All of the following must be true for you to be eligible for Florida’s homestead exemption (and to be clear, these requirements do not apply to other Florida bankruptcy exemptions):
- Home is half an acre or less (or 160 acres if outside a municipality);
- Home is your primary residence; and
- You have owned the property for 1,215 days or more prior to filing for bankruptcy.
If you do not meet these requirements, then you may still be able to exempt some of the equity in your home, but you will not be eligible for the unlimited exemption.
Contact Our West Palm Beach Bankruptcy Attorneys Today
When you are considering personal bankruptcy in South Florida, it is essential to discuss the details of your case and your particular financial circumstances with an attorney to determine relevant exemptions and other important applications of bankruptcy law. An experienced West Palm Beach bankruptcy lawyer at Kelley, Fulton, Kaplan & Eller can talk with you today to learn more about your financial situation and can assist you with all aspects of a bankruptcy filing in South Florida. Contact us today for more information.
Source:
leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&Search_String=&URL=0200-0299/0222/Sections/0222.01.html
