Florida's homestead exemption protects Unlimited (half-acre in municipality) of equity in your home. Combined with Chapter 13's mortgage cure provisions, most Miami homeowners can keep their homes through bankruptcy.
Florida provides a homestead exemption of UNLIMITED value (up to half an acre within a municipality, 160 acres outside -- protected by the Florida Constitution). This protects equity in your primary residence from creditors and the bankruptcy trustee.
How equity works: If your home is worth $300,000 and you owe $250,000, your equity is $50,000. Since Florida's homestead exemption is unlimited in value (within the acreage limit), all equity is protected.
Florida is a judicial foreclosure state, meaning every foreclosure must go through the courts. The lender files a lawsuit (lis pendens), the homeowner has 20 days to respond, and the case proceeds through litigation. Contested foreclosures routinely take 12-24 months. Florida allows a right of redemption until the clerk files the certificate of sale. This longer timeline gives Miami homeowners more time to explore alternatives like bankruptcy.
Chapter 13 is the most powerful tool for Miami homeowners facing foreclosure:
Miami-Dade County has one of the highest foreclosure rates in the nation. The judicial process provides more time but also more uncertainty. Many Miami homeowners use Chapter 13 bankruptcy to cure mortgage arrears over 3-5 years while the automatic stay halts the court foreclosure process.
In most cases, yes. Florida's homestead exemption protects Unlimited (half-acre in municipality) of equity. In Chapter 13, you can keep your home and cure mortgage arrears over 3-5 years.
Florida protects UNLIMITED value (up to half an acre within a municipality, 160 acres outside -- protected by the Florida Constitution).
Florida uses judicial only foreclosure. The typical timeline is 6 to 12 months or longer because Florida requires court involvement.
Yes. Filing Chapter 13 immediately stops foreclosure through the automatic stay. You can cure your mortgage arrears over 3-5 years while resuming regular payments.
In Chapter 7, you must be current on your mortgage to keep your home. Chapter 7 can eliminate other debts, freeing up income to make mortgage payments.
In Chapter 13, if your home is worth less than your first mortgage, you may strip off your second mortgage entirely under 11 U.S.C. section 1322(b)(2). This can save tens of thousands of dollars.
Use the free 1328(f) screener to check whether a prior discharge affects your eligibility for a new bankruptcy discharge.
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