The Bankruptcy Code provides for personal bankruptcy relief under chapters 7 and 13. Chapter 7 Chapter 7 provides in general for the discharge of debt together with the liquidation of non-exempt property by the Chapter 7 trustee. Chapter 7 is usually used by those with lower income and little or no non-exempt property. Chapter 13 Chapter 13 is usually used by those with higher income or substantial non-exempt property. It is also used by those who need to reorganize their secured debt, such as mortgage to avoid foreclosure. Under chapter 13, a debtor is allowed to reorganize their debt under a chapter 13 plan over a period of three to five years.
Article X, Section 4 of the Florida Constitution provides generally for the exemption of a Florida homestead. Courts generally hold that once a property is established as a homestead, it does not lose that status until it is "abandoned." Various types of conduct may constitute "abandonment." Generally, a homestead is considered abandoned when it is no longer a bona fide home and place of permanent residence. The main consideration in the determination of whether a homestead has been abandoned is the owner's subjective "intent." The homeowner's physical absence from the property is not determinative. Placing a property on the market for sale or signing a contract for the sale of property may be relevant unless the homeowner can show a good faith intention to reinvest the [...]
Chapter 13 bankruptcy is often used to save a home from foreclosure. Generally upon the filing of a chapter 13 case, foreclosure cases are stopped and a person is given the opportunity to propose a chapter 13 plan to save their home from foreclosure. A chapter 13 plan offers various alternatives on how to save a home from foreclosure. Reinstate Mortgage Under a chapter 13 plan, a debtor may propose to catch up their mortgage payments over a period of up to 60 months. For example, if a person is behind $10,000 in payments and their regular mortgage payment is $850.00, they would pay $166.67/mo. plus their regular mortgage of $850.00 for a total of $1,016.67 together with any other amounts due under the [...]