What Is The Florida Homestead Exemption
The Florida homestead exemption answers the question can you file for bankruptcy and keep your house in Florida? with a resounding YES! This is because the real estate designated as housing for you and your family is exempt from any bankruptcy agreement. How this is handled differs from one chapter of bankruptcy to the next, but in general, it allows for you to keep your primary residence even if others must be surrendered.
In chapter 7 bankruptcy, your appointed bankruptcy trustee will seize and sell nonexempt property and assets to offset the costs of your unpaid debts. This will not include your exempt homestead property. In many states, you being able to keep your home through this exemption will depend on its value, allowing you only to keep property up to a certain dollar amount of value. However, Florida law allows you to exempt your homestead property up to an unlimited value. This means no matter how much equity is tied up in your home, you can keep that home as part of Floridas homestead exemption.
In chapter 13 bankruptcy, the appointed trustee will not seize or sell your assets. Rather, you will be responsible for paying the equity value of your nonexempt property, or your total determined disposable income whichever is greater. To determine what your disposable income is, your bills and other necessary expenses will be deducted from your total income.
What Happens To Your House When You File For Bankruptcy
I want to file for bankruptcy but do not want to include my car or my house. Is that possible?
Bankruptcy is a complicated process that gives consumers a chance to deal with debt they cant afford. But it can also ruin peoples credit and put them at risk of losing their property.
Figuring out how much of your assets can be seized depends on the type of bankruptcy you file and the total worth of those belongings.
Through the most common form of consumer bankruptcy, Chapter 7, people are essentially saying that they dont have the disposable income to make debt payments and want to have that debt eliminated. As part of the process, consumers may have their assets seized and sold off to pay off at least a portion of their debts.
However, not all of their property can be seized. Some assets including cash, your home and your car are exempt from the bankruptcy, based on how much they are worth. Exemption amounts vary from state to state, but generally, any assets with equity lower than the exemption amount cannot be seized. Retirement accounts, such as 401 plans and pensions, also are protected from being seized during bankruptcy, though some people with a traditional IRA or Roth IRA may find that the exemption for retirement savings is capped at nearly $1.3 million.
Waiting Periods For Other Bankruptcies
While the legal implications behind debt discharge or dismissal outside of Chapters 7 and 13 bankruptcies are beyond the scope of this article, we can share the waiting periods for getting a new mortgage if youve filed Chapter 11 or 12 bankruptcies in the past.
For Chapter 11 bankruptcies, you can get a mortgage through the FHA or VA as long as you otherwise qualify and the bankruptcy was discharged or dismissed 2 years prior to application. The waiting period for conventional loans is 4 years and 7 years for jumbo loans.
For a Chapter 12 bankruptcy, conventional loan policy again differentiates between discharge and dismissal. If the bankruptcy is discharged, that has to have happened more than 2 years prior to application and it has to be filed more than 4 years ago. When the bankruptcy is dismissed, the waiting period is 4 years.
With an FHA loan, the bankruptcy only needs to be discharged or dismissed before you apply. Meanwhile, the VA has a 3-year waiting period prior to application.
Filing for bankruptcy is a big decision that has a lot of implications for your current and future financing. Make sure you discuss your options with a lawyer or your financial advisor before you stop making payments or file for bankruptcy.
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If Youre Having Trouble With Your Mortgage Payment
Its probably best to start by talking about what to do if youre having trouble with your mortgage. Its our expertise, but also for many people, its their single biggest monthly expense. If you find yourself struggling, you have a few options for mortgage help.
The most preferable option for most people might be to look at a modification. A mortgage modification involves temporarily or permanently lowering your interest rate and/or extending your term so that you can more easily afford your monthly payment.
If youve been over things with your servicer and can afford to make a payment at all, one option might be a short sale. In this scenario, you might know you cant sell your home for what you owe on your mortgage. However, if you can prove hardship, your lender might be willing to let you do a short sale where they work with you to sell the property for less than what you are.
Depending on state law, a lender may be able to go to court and get a judgement against you for the difference between what the property sells for and what you actually owe, so thats something to be aware of.
Finally, your lender could approve a deed in lieu of foreclosure. Under this arrangement, you sign the property over to your lender and they then sell the home. In exchange for keeping the home in good shape, your lender may forgive some or all of the difference between what you actually owe and what the property can be sold for.
What If Im Behind On My Mortgage
If youâre behind on your mortgage payment and â¡ï¸
you donât want to keep the house: Chapter 7 provides a mechanism to surrender the house to the bank and discharge your obligation to pay the loan. This will protect you if your mortgage loan is a ârecourseâ loan where the bank could otherwise try to collect a deficiency judgment after the foreclosure.
you do want to keep the house: Chapter 7 is not ideal. It doesnât provide a mechanism to catch up on your mortgage payments. This means youâre still at the mercy of the bank and their willingness to modify your home loan to deal with your arrearage. If you can afford to make your full mortgage payments now, Chapter 13 bankruptcy may offer a solution.
Will I Lose My House If I File Chapter 7
If you do not have significant home equity and the mortgage on your home is still current, you will not lose your house if you file for Chapter 7 bankruptcy. Most people who file Chapter 7 bankruptcy are able to retain all of their assets, which can include your house. However, if you are facing foreclosure, you might want to pursue a different route for filing bankruptcy, such as filing Chapter 13 bankruptcy instead.
If you are filing Chapter 7 bankruptcy and are worried about losing your house in Rutherfordton and other assets, you can work with a Rutherfordton bankruptcy lawyer to help you retain as many assets as possible.
Check If Someone Else Has A Legal Right About Your Home
Someone might have a legal right about your home if they either:
- live with you
- helped pay for your home – for example if theyve paid some of the deposit or mortgage
If someone lives with you and theyre your wife, husband, civil partner or child, they have a legal right to stay in the home.
If someone has helped pay for your home, they might have a right to some of the money if your home is sold. Their share is called their beneficial interest.
Someone can have a beneficial interest even if they dont own the home, or if they live somewhere else.
Each persons beneficial interest is the amount of money they would get after anything secured on your home, for example mortgages or loans, has been paid back.
If you own the property jointly, the beneficial interest is normally shared equally between you and the other owners.
If another owner has paid more than you, they might be entitled to a bigger share. Talk to an adviser if you need to prove someone should have a bigger share than you.
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Can You File Bankruptcy And Keep Your House In Florida
When people consider filing for bankruptcy, one of the first questions they often have is regarding whether they will or will not lose their home and other major assets. The home, especially, is of paramount concern for those who are facing overwhelming debt, since housing can be difficult to come by when youre already struggling financially. One of the most common questions posed to the staff at Van Horn Law Group is can you file bankruptcy and keep your house in Florida?
Florida is one of the best states to live when it comes to filing bankruptcy. Why? Because the state of Florida has a very generous allowance called the homestead exemption. While federal law is what ultimately governs bankruptcy, state law is also important especially when it comes to bankruptcy exemptions.
Is Buying A House After Bankruptcy Possible
A bankruptcy proceeding can reduce or even eliminate your debts, but it will damage your credit report and in the process, which can affect your ability to obtain credit in the future for things such as new credit cards, a car loan, and a home mortgage.
It is possible to buy a house after bankruptcy, but it will take some patience and financial planning. It is important to check your credit report regularly to make sure everything is there that should beand nothing is there that shouldnt be. You can start to rebuild your credit using secured credit cards and installment loans, making sure all payments are made on time and in full each month.
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How Filing Bankruptcy Can Make Paying Your Mortgage Easier
Your bankruptcy discharge wipes out most of your unsecured debts. Medical bills, credit card payments, loan payments, etc. all of the bills that are making it hard for you to make ends meet now are eliminated by a bankruptcy filing.
With debt repayment obligations gone, you can focus on the expenses that really matter: mortgage payments, utilities and regular living expenses.
Thatâs actually true if youâre renting, too. Rent will always need to be paid, just like a mortgage, electricity, water and other utilities. But as soon as the automatic stay kicks in, you’ll be protected from debt collectors.
Can Cpp Be Garnished
Because the CRA is more powerful than other creditors like credit card companies, it can garnish both CPP and OAS and all types of pensions. In short, the CRA does not have to abide by standard garnishment rules and can seize some or even all of your monthly CPP earnings. Other creditors cannot seize your CPP earnings directly, but they could potentially access these funds through a garnishment of your bank account where the funds are deposited.
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Can I Stay In My Home While It Is Being Sold
Usually, if you are bankrupt, you are not expected to immediately move out of your home. In normal circumstances, the trustee will give you a few weeks to make alternative arrangements.
In some cases, the trustee may allow you to stay in your home during the selling period, provided you assist with the sale process, contribute a fair rent and maintain the home.
Filing For Bankruptcy: Will I Lose My House
One of the primary concerns of people considering bankruptcy is whether it will affect their home or vehicle ownership. There is a lot misinformation regarding how the process of filing for a Chapter 13 or Chapter 7 bankruptcy affects property ownership.
Would you be surprised to learn that filing a bankruptcy may actually help you to save your property or achieve better payments with your creditor? In addition to the detailed information below, we offer a free consultation to discuss your questions and unique circumstances in more detail. Call us today at 866-261-8282 to schedule a convenient time at any one of our Michigan offices: Detroit, Ann Arbor, Flint, Southfield, Warren, Lansing or Dearborn.
Chapter 13 Bankruptcy and Home Ownership: Will I Lose My House In Bankruptcy?
A Chapter 13 bankruptcy is a debt consolidation plan designed to help you keep your home, assuming you have income to support making the payments. Filing the Chapter 13 plan will actually legally protect your home from foreclosure as long as the petition is filed with the court before the foreclosure sale occurs.
Other ways that the Chapter 13 program may help you keep your home or improve your payment terms:
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How Resolve Can Help
If youre dealing with debt and not sure what to do, were here to help. Become a Resolve member and well contact your creditors to get you the best offers for your financial situation. Our debt experts will answer your questions and guide you along the way. And our platform offers powerful budgeting tools, credit score insights and more. Join today.
If I Go Bankrupt Will I Lose My Pension In Canada
Losing your pension can be a scary thought. We spend a lifetime building our pension, and we dont want to see it taken away in a flash in a bankruptcy.
The good news is that there are Canadian laws that protect individuals pensions in the case of bankruptcy.
The Licenced Insolvency Trustees at David Sklar & Associates have ample experience with bankruptcies in Canada. They will help walk you through the process and explain all the nuances of your savings-related assets, including both your RRSP and pension.
Talk To A Bankruptcy Lawyer
Need professional help? Start here.
Restrictions On People Who Have Been Declared Bankrupt
Once you have been declared bankrupt, you will be guilty of an offenceif:
- You do not disclose the bankruptcy when getting a loan or any other credit facility of 650 or more
- When trading in a name other than that in which you were made bankrupt, you do not disclose the bankruptcy
- You act as a director, manager, auditor, liquidator or receiver of a company without permission of the court
These offences carry a maximum penalty of 5 years in prison and a fine of1,270.
Other consequences of bankruptcy are:
- If you wish to travel outside the State, you should tell the Official Assignee. You may be arrested if it seems to the High Court that you are leaving the State in order to avoid the consequences of your bankruptcy.
- You cannot be granted an enduringpower of attorney on behalf of someone else, and if you hold one already, it is automatically revoked if you become bankrupt.
- Under the Charities Act 2009, you may not be a trustee of a charity if you are adjudicated bankrupt.
- Some professional bodies disqualify members who are adjudicated bankrupt
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How Do Bankruptcies Affect A Joint Mortgage
If one person files for bankruptcy, that can have an impact if you both are on the mortgage. There are instances where one persons bankruptcy can cause issues with keeping the home, even if more than one of you is on the mortgage. In order to be fully apprised of what can happen, talk to your attorney.
Filing Bankruptcy In Nj Can Make Getting A Job More Difficult
I get many questions about how bankruptcy will affect a clients life going forward. Usually it is how it will affect their credit score or sometimes how it might affect security clearance or military service. However, one question that is not usually asked is how it will affect future employment.
Many of my clients retain me because a job loss caused their financial difficulties. They are hoping that they will be able to get a job before the unemployment benefits run out. Unfortunately, recent federal court decisions have shown that a bankruptcy on your credit report can make that goal harder to attain.
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