Are you a Florida resident contemplating bankruptcy? Do you own a home and wonder if it’s safe during the bankruptcy process? The laws regarding homestead property can be very confusing so we’ve created this handy guide regarding Florida Bankruptcy Homestead Exemption:
1. What is the Florida Bankruptcy Homestead Exemption?
The Florida Bankruptcy Homestead Exemption allows any Florida resident to exclude up to $50,0 of the value of their main, permanent residence from Florida property taxes. This exemption also provides creditor protection and it is among the broadest homestead laws in the country.
2. Is Your Home Considered a Florida Homestead?
In order for your home to be considered a Florida Homestead, you must meet three requirements:
- You must have beneficial title or legal title of the home on January 1.
- The home must be your personal residence.
- If you wish to receive the homestead exemption you must apply in person at the property appraiser’s office in the county where your home is located between January 1 to March 1 of the year in which you are looking to get the exemption. Once you get the status, it will stay in place until you inform the appraiser that it’s no longer your homestead.
3. The Homestead Exemption and Chapter 13 Bankruptcy
Florida residents can claim the Homestead Exemption during Chapter 13 Bankruptcy because, in this sort of bankruptcy, they can keep their property providing they repay their creditors some of their money back. This exemption is important during Chapter 13 because your unsecured creditors must receive at least what you would have gotten if you filed Chapter 7. Chapter 7 is governed by certain exemptions. In Florida, your entire home is exempt so unsecured creditors don’t receive equity.
For more information regarding the two types of bankruptcy in Florida, please check out our previous post, what are the types of bankruptcy in Florida.
If you would like more information regarding the Florida Bankruptcy Homestead Exemption, contact the experienced Bankruptcy Attorneys at Berkowitz & Myer. We have helped thousands of Florida residents just like you. Contact us for a free consultation at (727) 344-0123.