One of the most misunderstood aspects of filing for bankruptcy in Florida is the implication that taking action means the filer is going to lose everything. Contrary to popular belief, the idea behind personal bankruptcy is to help individuals who find themselves in unexpected financial difficulty land back on their feet.
There is a general appreciation in the law that stability is hard to achieve if you do not have a roof over your head and the means to make a living. That is why certain assets may be exempt from the action, and, how things are handled differs depending on the chapter filed.
Chapter 13 tends to be the one used most often for the protection it can afford your home. Chapter 13 creates a schedule under which you have time to pay off as much existing debt as possible. No action against the home can proceed during the scheduled payment time, as long as the agreed-to obligations are being met.
Chapter 7, often referred to as liquidation bankruptcy, allows for quicker elimination of debt obligations. Homestead protections tend to be more limited. A foreclosure action is halted at the point at which the bankruptcy filing is granted. But an exception to full protection doesn’t apply if there is a lien on the property due to a mortgage.
What this reflects is a confluence of real estate and bankruptcy law. The waters can become choppy and navigating needs to be done with care. That means determining the appropriate bankruptcy filing for your situation. And to do that, you should always consult a qualified bankruptcy attorney.
For more information on the potential benefits of filing for Bankruptcy, contact me, Colin Lloyd, today to take the first step in building a more secure and stress-free financial future. I will help you determine which bankruptcy option is best for you and will guide you through the process. Do not hesitate to schedule your free consultation at one of our four locations (Port St. Lucie, Vero Beach, Fort Pierce, and Okeechobee). Call me today at 866-460-1990.