It is natural to worry and wonder about how a bankruptcy will affect your current lifestyle as well as your financial future. If you have arrived at this website seeking answers about bankruptcy in Florida, chances are good that you may be a likely candidate for this debt relief solution.
The P.R. Smith Law Group welcomes your inquiry as you look for answers to questions such as, "Will I lose my house, car and personal property if I file bankruptcy?" Sometimes we tell clients that they are much more likely to lose everything if they do nothing in the face of overwhelming debt than if they file bankruptcy. Bankruptcy is a legal solution to a serious imbalance of income and assets on one side of the scale and debts on the other side.
Florida bankruptcy laws spell out exemptions of property that you get to keep when filing Chapter 7 or Chapter 13 bankruptcy. In the majority of cases, our clients are able to keep most or all of their personal property.
Florida is well known for its liberal exemptions including the following:
- Unlimited homestead exemption: If you are able to keep up with mortgage payments or if you own your home outright, you are allowed to exempt it completely when you file bankruptcy. In other words, "Yes, you can keep the house." This applies to a mobile home as well as a traditional house. If you are behind on mortgage payments, a Chapter 13 bankruptcy may be in your best interest.
- Vehicle exemption: Each debtor is allowed a $1,000 exemption for equity in a vehicle in a Chapter 7 bankruptcy. In addition, each debtor may apply up to $4,000 of a "wild card" to protect personal property, including cars, if they claim no homestead exemption. These exemption allowances are double for married people filing jointly. There are other possible ways that you can keep your car. For example, in some cases, if the value of your car is less than what you owe on it, a Chapter 13 will allow you to restructure the car loan, thereby allowing you to pay back just the current value of the car, not the entire remaining debt. That debt can be paid back at a very low interest rate over a three-to-five-year period. In addition, if you have no equity in your vehicle and are behind on your payments, a Chapter 13 will allow you to cure your arrears or re-amortize your entire debt over a three-to-five-year period.
Sometimes as our clients discuss their cars and finances with us, they realize that keeping their car and keeping up with car payments may not be the best option. It may actually be to your advantage to include your car loan in your bankruptcy. If you do this and stop making payments on the car, you can expect the lending institution to repossess the car, which the lender has a lien on.
No one should attempt to determine the precise projected outcome of a bankruptcy without asking an experienced attorney to evaluate all relevant facts. At P.R. Smith Law Group P.A., we go to great lengths to ensure that our clients understand their options and understand how to maximize the benefits of bankruptcy if they decide to file Chapter 7 or Chapter 13 bankruptcy.
Car Repossession, Foreclosure and Bankruptcy · Free Initial Consultation at P.R. Smith Law Group, P.A.
For more information on your house, your car and bankruptcy, speak with an attorney about your rights. Contact the P.R. Smith Law Group by calling our Florida law firm toll free at 888-682-5251 to make an appointment for a free consultation with a knowledgeable bankruptcy lawyer in Tampa or one of our other offices.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
