Does Owning Florida Real Estate Confer Eligibility To File Bankruptc...

An attorney called me today to ask me about his client who had moved from Florida to Ohio a few months ago to take a new job and establish a new residence The same client still owned a piece of real property in Florida which was his former Florida homestead. The attorney understood that the client would not be eligible for Florida exemptions because the debtor no longer domiciled in Florida. The question was whether or not the client could file bankruptcy in Florida because he retained ownership of Florida property.

The bankruptcy law privies that a debtor may file bankruptcy in any federal district in which the debtor’s domicile, place of business, or principal assets have been located for the greater part of the preceding 180 days. The law does not state a debtor may file wherever he owns property or has a residence. Filing is permitted where the debtor owns most of his property and where he primarily resides. This attorney’s client could not file bankruptcy in Florida if most of the client’s assets have been relocated in Ohio.

The general rule gives some debtors a choice of where to file bankruptcy. For example, a debtor who resides  in Ohio and runs a business in Florida, or has most of his assets in Florida, may chose to file bankruptcy in either Florida or Ohio.  is subject to court discretion to maintain a bankruptcy filed in the incorrect venue for reasons such as convenience of parties or case administration.