What Does “Residency” Mean for Florida Bankruptcy Exemptions?
Florida has a wide range of bankruptcy exemptions that are especially valuable for individual debtors who are filing for Chapter 7 bankruptcy, although the exemptions are also relevant in Chapter 13 bankruptcy cases. If you are planning to file for Chapter 7 bankruptcy, Florida’s bankruptcy exemptions will allow you to protect any property that is exempt — that property will not be liquidated in order for you to receive a discharge, and you can keep the property. Many people who are considering bankruptcy are eager to use Florida’s exemptions because Florida has one of the most generous — if not the most generous — homestead exemptions. In a Florida bankruptcy, an individual debtor can exempt all the value in their home. For anyone with a home that is paid off or nearly paid off, this means being able to keep your entire home and all the equity in it and still have other debts discharged.
In order to use Florida’s bankruptcy exemptions, you must meet a residency requirement. What does residency mean for purposes of bankruptcy eligibility in Florida? Our West Palm Beach bankruptcy attorneys can tell you more about residency requirements and bankruptcy cases in Florida.
Timetable for Using Florida’s Bankruptcy Exemptions in General
In general, if you want to use Florida’s bankruptcy exemptions, you must have been a resident of Florida for 730 days before you file your bankruptcy petition. It is important to know that this timing requirement is distinct from eligibility to file for bankruptcy in Florida, which only requires residency for 180 days prior to the date of your filing. To be clear, if you have not lived in Florida for 730 days prior to filing but do meet the 180-day requirement, you would use the bankruptcy exemptions from your previous state of residence. If your previous state does not allow a debtor to use its exemptions if the filer lives out of state, then you will use federal exemptions.
Understanding Residency
What does residency mean for purposes of filing for bankruptcy in Florida and being eligible for Florida’s bankruptcy exemptions? This is a common question, especially for Florida residents who have a winter home in Florida and a summer home elsewhere. There is no single, simple answer to this question, but in short, Florida must be your primary residence. Typically, it will need to be the place where your vehicle is registered, for example, and where you have your driver’s license, and where you vote. In short, it should be the place where you have the most connections, and where you consider to be “home.” A lawyer can discuss your circumstances with you, especially if you have two different states in which you own a “home.”
Extended Timeline for Florida’s Homestead Exemption
To be eligible to use Florida’s homestead exemption, in addition to meeting the 730-day residency requirement, you must also have owned your home in Florida for at least 1,215 days prior to filing for bankruptcy.
Contact a West Palm Beach Bankruptcy Attorney Today
If you have any questions about your eligibility for Florida’s bankruptcy exemptions, or if you are ready to file for bankruptcy, one of our experienced West Palm Beach bankruptcy lawyers at Kelley, Fulton, Kaplan & Eller can assist you. Contact us today for more information and to get started on your bankruptcy filing.
Source:
leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&Search_String=&URL=0200-0299/0222/Sections/0222.01.html
