Can I keep my investment properties in a Chapter 7 Florida Bankruptcy?
The answer really depends on whether or not you have equity in those properties. In Florida, there is an unlimited homestead exemption as long as you bought your home over 3 1/2 years ago from the date of filing your bankruptcy petition. This means the Trustee cannot liquidate your home to pay back your creditors.
If you bought your home within the last 3 1/2 years, your protection is capped at $125,000 equity. If you have more than $125,000, than you will either have to surrender the home or buy back the equity.
However, there is not unlimited protection in investment properties. The moment you have equity in a property, it becomes an asset and may be subject to liquidation by the bankruptcy Trustee.
In that instance, assuming you were wanting to keep the properties, it may be wise to file under Chapter 13 bankruptcy protection. In a Chapter 13, you keep all of your property as long as you are able to keep up with your monthly plan payments.
If you have questions about bankruptcy and foreclosure in Florida contact a foreclosure defense and bankruptcy attorney.
Greg Gilbert
Keith Maynard
