Filing for bankruptcy is a major financial decision, and for homeowners in Florida, one of the first concerns is often: “Will I lose my home?” The answer depends on several factors, including the type of bankruptcy you file and how much equity you have in your home.

At Bankruptcy Lawyers Miami, we assist individuals and families across Miami-Dade County with navigating the bankruptcy process and protecting their most valuable assets—often including the family home.

Florida’s Homestead Exemption

Florida offers one of the most generous homestead exemptions in the country. This exemption can protect an unlimited amount of equity in your primary residence from creditors, as long as:

• The property is no larger than half an acre in a municipality or 160 acres elsewhere
• You’ve owned the home for at least 1,215 days (about 3.3 years) before filing for bankruptcy

If you meet these requirements, your home may be fully protected from liquidation in a Chapter 7 bankruptcy case.

Chapter 7 Bankruptcy and Your Home

In Chapter 7 bankruptcy, a court-appointed trustee may sell non-exempt assets to pay creditors. However, if your home is fully covered under the Florida homestead exemption and you’re current on your mortgage, the trustee cannot take your home.

But be careful: if you’re behind on mortgage payments, the lender can still foreclose—even if your equity is protected under the homestead exemption. Bankruptcy can temporarily delay foreclosure, but it does not permanently stop it.

Chapter 13 Bankruptcy and Your Home

Chapter 13 bankruptcy is a reorganization plan that allows you to catch up on past-due mortgage payments over a period of three to five years. If you have a steady income, Chapter 13 can be a useful tool to keep your home while resolving other debts.

In this case, the Florida homestead exemption is still beneficial, but the main advantage is the ability to avoid foreclosure by making up missed payments through the repayment plan.

What If You Have Too Much Equity?

If you haven’t lived in your home long enough to qualify for full protection or your home doesn’t qualify under Florida’s rules, some of your equity may be at risk in Chapter 7. In these cases, filing Chapter 13 might be a better strategy to prevent the forced sale of your home.

Let Bankruptcy Lawyers Miami Help

Protecting your home in bankruptcy can be complex, but you don’t have to go through it alone. At Bankruptcy Lawyers Miami, we guide Miami-Dade residents through every step of the process. We help assess your options, understand your exemptions, and choose the path that best protects your future.