SouthFloridaBankruptcyLawBlog

When a person files for chapter 7 bankruptcy relief in Florida, he is allowed to exempt certain property from his bankruptcy estate. Exempt property generally means property that a person is allowed to keep free from liquidation by the chapter 7 bankruptcy trustee for distribution to creditors.

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On March 4, 2014 the US Supreme Court issued its decision in the case of Law v. Siegal, 134 S.Ct. 118 (2014).  The Court ruled that the Bankruptcy Court exceeded its authority when it ordered that the debtor's homestead be "surcharged" to pay the chapter 7 trustee's fees of $75,000.00.

One possible avenue to save your home from foreclosure may be to file for Chapter 13 bankruptcy relief and then to negotiate with the mortgage servicer for a mortgage modification while the Chapter 13 bankruptcy is pending. The filing of the bankruptcy stops the progress of the foreclosure action and may give the homeowner many months to negotiate a modification. Perhaps the mortgage company may be more willing to allow a mortgage modification if faced with the alternative of a Chapter 13 bankruptcy plan.

Two Florida Third District Court of Appeals 2007 decisions provide a review of the meaning of the Florida Homestead Exemption in three different contexts.