When going through the bankruptcy process, filers must declare their intentions toward any property securing their debt, which can include their home. This can involve surrendering the property to the lender or retaining it and making payments to reduce the debt. If you agree to surrender the property in order to clear the mortgage debt, can you contest the foreclosure to try and delay the process while remaining in the home?
Senate Bill 220, a new law addressing the property rights of defendants pertaining to bankruptcy and foreclosure proceedings, recently signed by Florida Governor Rick Scott says no. The bill is consistent with the ruling in the Florida Middle District Case In re Metzler, a 2015 case that ruled debtors cannot raise defenses once a subject property has been surrendered in bankruptcy. However, the law does allow defenses to be made based on the conduct of the lender after surrendering the property.
Florida has one of the most generous homestead exemptions in the country. To use Florida’s bankruptcy exemptions, you must have resided in Florida for at least 730 days before filing your bankruptcy petition. To claim the full value of the homestead exemption in Florida, you must have owned the property for at least 1,215 days before the bankruptcy filing.
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Choosing the right attorney can make the difference between whether or not you can keep your home. A well-qualified Miami foreclosure defense attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. Miami foreclosure defense attorney Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.