When filing for bankruptcy many clients worry about losing everything they own, including the roof over their heads. However, the U.S. Bankruptcy Code provides bankruptcy exemptions, which allow the filer to protect certain property from being sold off during the course of bankruptcy. The State of Florida offers some of the most generous exemptions in the country for bankruptcy filers, including the homestead exemption.
The homestead exemption allows the filer to protect the equity he or she has in the home in which the filer resides. Florida bankruptcy law allows the filer to claim an exemption on his or her homestead for the full amount of the home, allowing him or her to keep the property during the bankruptcy. The key is, however, the homeowner must have bought and owned the property for at least 1,215 days prior to the bankruptcy filing.