Protecting Successive Florida Homesteads in Bankruptcy

A reader asked me to address a situation where a Florida resident owned a homestead property for 30 months and sold the house. Within a reasonable time after the sale, he bought a new homestead where he then lived for 45 months prior to filing bankruptcy. The question is whether the reader would in bankruptcy get Florida’s unlimited homestead protection which is available for people who have owned their homestead for 40 months or more.

The new bankruptcy law specifically addresses this situation. The law provides that previous ownership of a homestead in the same state can be tacked on the time of ownership of the existing homestead. So, if this person first house and transfers the net proceeds into the second house he will be deemed to reside 45 months in his Florida homestead when he files bankruptcy. Again, both homesteads must be located in Florida to combine time residence.

posted by Jonathan Alper, bankruptcy and asset protection attorney, Orlando, Florida

Comments

[marcia helms]

Jonathan, my husband and I sold our home in Big Pine Key and had been given the home by my Mom n April 2007, she had a Life estate in the property. She passed in October of 2007 from breast cancer. My husband and I took out a mortgage on the home for $200,000 due to my illness. We then sold the home in June of 2010 for a bargain price of $468,000 which netted us out $227,000. We paid off more medical and other bills and also are paying for the care of our son who is now 3. That home was our homestead for almost three years and now we are buying a home in Ft. Myers for $80,000. I am facing bankruptcy after my first husband of 15 years failed to do his part in or Separation Agreement. My question is will my newly purchased Homestead be protected if I am only spending $80,000 in the home as TBE with my husband? Also, I see you are in Orlando. Is that too far for you to work with us in Ft. Myers?
Kind Regards,
Marcia Helms
443-949-6970 cell

[Charles Brown]

Yes, I agree with you Mike Matthew that chapter 13 bankruptcy can help us to protect successive Florida Homesteads.when you encounter this kind of problem don't be hesitate to contact a bankruptcy Lawyer they are the one who can help us this kind of problem talking homestead.

[Mike Matthews]

In order you to protect successive Florida Homesteads in Bankruptcy you need it to consult your Bankruptcy attorney.Try to file chapter13 bankruptcy it can help you in that kind of case.