Hard times hit everyone. They hit some harder than others.
No one wants to file for bankruptcy. Sometimes there is just no other alternative. It’s just the last resort.
Losing the place you live in because of bankruptcy can be a huge nightmare. A home is your sanctuary, your base of operation and a lot more things. Even the thought of losing it might make it seem like it is the end of the world as you know it.
If you live in West Palm Beach Florida and have filed for bankruptcy, then this thought must surely have crossed your mind.
Can you possibly keep your West Palm Beach home through bankruptcy?
Well, chances are, you might just be able to. But it’s going to be a long and complicated process. How complicated? Well, it mostly depends on your full understanding of the situation and whether your bankruptcy lawyers can negotiate the best deal for you.
Filing for bankruptcy under Chapter 7
One of the most frequently chosen kinds of bankruptcy is Chapter 7. On paper, it looks good enough so people most often want to go for it when they are in the process of opting for bankruptcy.
In Chapter 13, you choose to repay your debt at a much slower rate that is easily manageable by you. It doesn’t wipe your slate clean. The debts remain where they are till fully repaid.
That is not the case with Chapter 7. In chapter 7, yes all your debts go away. They are cleared. This means that unless they are exempt for one reason or another, your assets will be liquefied to pay for them.
Some things cannot be, or in most cases aren’t discharged. These could include students loans for example, child support that is due, or alimony that you need to pay. Some other types of debts are also not qualified to be discharged.
What you need to do is to discuss all your financial dealings with your bankruptcy lawyer. Your lawyer is most qualified to tell you which loans will or will not be discharged during the bankruptcy you have filed for.
Hopefully, your home is one thing that will be successfully discharged.
Assets Exempted in Bankruptcy
In Florida, bankruptcy laws vary. Your home, according to Florida statutes will most likely be exempted. Chances are in most cases, not only will your home be exempted, but any other personal property you own too. Well, until the proceedings run anyway. And that can take years upon years.
But there are certain conditions that must be met in order for your home to be exempted during bankruptcy proceedings.
- You must have owned your property for several years. No new or recently acquired property can qualify.
- Within a municipality, your house cannot be bigger than half acre.
- If your house is outside municipality, then its size cannot exceed one hundred and sixty acres.
- The value of the home and its size can and will have effects on the exemptions.