Filing Bankruptcy In Florida After Short Move To Another State Looking For Work

A professional licensed in Florida emailed me this interesting fact situation. The man’s professional business in Florida failed. His business failure in Florida had caused him to run up substantial credit card bills in his name alone. He and his wife rented out his Florida home on a month to month lease, and they both moved out of state looking for better opportunities. His wife got a high paying job out of state. They rented an apartment in their new location where they have lived for two months.. He asks whether a Chapter 7 bankruptcy would be possible, and if so, could he file bankruptcy in Florida after returning to his former homestead. He is also concerned about his bankruptcy jeopardizing his wife’s money and jewelry.

There are some interesting issues in this real life fact situation. I do not think the debtor relinquished Florida residency by moving to a new location for two months. They probably did not abandon their Florida homestead by leasing it to someone else on a month to month arrangement. However, the real issue is whether they intended never to return to Florida when they went looking for a better life elsewhere. If they could prove they always intended to return to their former home they probably could protect the home under Florida’s homestead exemption.

The wife’s high paying job might cause them to fail the means test, except that the husband stated that his debts were primarily business related which fact would exempt his bankruptcy from means testing. The money his wife accumulated from her own work would be exempt from the husband’s bankruptcy. If he and his wife retained Florida residency any jointly owned accounts and property would be exempt in the husband’s case assuming there are no joint unsecured debts.

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