Homesetead Exemption

[kwcapt]

We are most likely going to file Chapter 7 in January. We have a home with a second mortgage and of course the house is underwater. We are trying to short sale the home and have an offer as of today. Our first mortgage is $203,000 and the second is about $198,000. The offer was $235,000 which we think the bank (boa) will laugh at. Question is: If we file BK7 in Florida, can the homestead exemption be used for personal property such as household items or cars. We don't have anything of major value just standard furnishings and two cars that are 8 and 10 years old respectfully, not lamborginies just old fords.

Thanks to all in advance. I believe we will be counting the days down soon.

[aljohnson007]

If you do not want to keep the house, I would advise not doing a short sale as you will most likely get a 1099 for the difference which is taxable and it will go down on your credit report as a chargeoff. Included in bk is a better option.

[AngelinaCat]

Question is: If we file BK7 in Florida, can the homestead exemption be used for personal property such as household items or cars.

No. The homestead exemption is for the homestead, period. At least that is my understanding. You are allowed personal property exemptions and those would cover the household items.

As to the cars, in Florida you are allowed an exemption of up to but no more than $1,000.00 for one car, period. If you and the spouse file jointly, and you have two cars, this may double. Or if you only want to protect one car then apply the 2K to it. But Florida really does not have good exemptions, and you are not allowed to use Federal exemptions.

Good luck to you. I know this isn't what you want to hear.

Merry Christmas!

[FloridaFiler]

[brokeinfl]

Sorry to bring up an old thread, but if in Fl you have a lot of equity in your home,( approx 200k), how long after chap 7 can you sell?

[aljohnson007]

Once discharged, I don' know of any restrictions that would prevent selling anything you own.