We have been living in our home since 1999 and we may be facing bankruptcy. At time of purchase, my home was located in an unincorporated area in a Florida County. About 1 1/2 years ago our neighborhood got annexed to a "Town" and it is no longer in an unincorporated area. I live on a one acre lot and in Florida this exceeds homestead bankruptcy limits for an incorporated area. I don't know how to research how a judge might rule in my case. Would I be considered "grandfathered" in because I purchased the home before the incorporation?
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You should be grandfathered and protected by state law. You may want to check to see if you need to explicitly lay this out in your filing.
Additionally, I am unclear about how this would be viewed if you, since the annexation, had either refinanced or obtained a new mortgage. That is a good question to consider for the future, as well.
I think you would be protected for the duration you occupy it as a homestead. I do not think a future buyer would be protected.11-20-09-- Filed Chapter 7
12-23-09-- 341 Meeting-Early Christmas Gift?
3-9-10--Discharged -
Here is a good answer:
J. EFFECT OF BEING ANNEXED. Where the owner of homestead property which exceeds one-half acre outside of city limits becomes annexed, that owner becomes “grandfathered” for homestead creditor protection so long as he or she continue to own the homestead property.
11-20-09-- Filed Chapter 7
12-23-09-- 341 Meeting-Early Christmas Gift?
3-9-10--DischargedComment
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which shall not be reduced without the owner's consent by reason of subsequent inclusion in a municipality; or if located within a municipality, to the extent of one-half acre of contiguous land, upon which the exemption shall be limited to the residence of the owner or the owner's family;Comment
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