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Keeping your Florida home after Chapter 13

Purchasing a Florida home is often a very proud day for a Floridian. A family's home is not only where they live, but may also be a symbol of the American dream for many. Therefore, the possibility of losing that home in a bankruptcy proceeding may be upsetting. Fortunately, however, there are ways that a family can keep their home even after filing for bankruptcy.

There are no guarantees that a person will be able to keep his or her home in a bankruptcy proceeding. A person who files for Chapter 13 bankruptcy will have a greater likelihood of keeping his or her home than one who files for Chapter 7 bankruptcy, which has stricter and less flexible exemptions. A determination that a person is allowed to keep his or her home may be made based upon the value of the property. In addition, if the property is worth less than a preset amount, the debtor may be able to keep his or her home.

The federal government operates under the assumption that a debtor will, and should, seek to sell off excess property to reduce debt. Nonetheless, the bankruptcy system is not intended to leave a person without the ability to function. In other words, the government realizes that a person still needs a place to live. Therefore, in some situations, its policies and exemptions do allow for a person to keep his or her home.

After a bankruptcy, if a person has kept his or her home, a person may continue to keep the home, as long as he or she can pay the mortgage. Often, lifting the burdens of all of the other debts via bankruptcy relief means that mortgage payments become more manageable payments, much to a person's relief.

An experienced bankruptcy attorney may be able to answer questions regarding the possibility of a Floridian keeping his or her home in a bankruptcy proceeding. But, the key is to ask for help.

Source: FindLaw.com, "Can I Keep My Home After Filing Bankruptcy?," accessed on June 8, 2015

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