Filing for bankruptcy is a major financial decision, and many Florida homeowners understandably fear it means losing their homes. Fortunately, that’s not always the case. At the Law Office of Paul L. Urich, P.A., we help individuals in Orlando navigate bankruptcy while protecting what matters most—including their homes.

Florida’s Homestead Exemption: Strong Protection for Homeowners

Florida offers one of the most generous homestead exemptions in the country. If your home qualifies as your primary residence, you may be able to fully protect it from creditors during bankruptcy, regardless of its value.

To claim this exemption, you typically must:

• Own the home and have it designated as your primary residence
• Have lived in the home for at least 1,215 days prior to filing
• Ensure the home is within a half-acre in a municipality or up to 160 acres outside a municipality

If you meet these criteria, your home may be exempt from liquidation in a Chapter 7 bankruptcy.

Chapter 7 vs. Chapter 13: What’s the Difference for Your Home?

• Chapter 7 Bankruptcy: This is also known as liquidation bankruptcy. If your home has significant equity beyond the exemption amount, the trustee may sell it to pay creditors. However, if the equity is protected by the homestead exemption, you can likely keep your home—as long as you are current on your mortgage.

• Chapter 13 Bankruptcy: This option allows you to reorganize your debts through a court-approved repayment plan. If you’re behind on mortgage payments, Chapter 13 may help you catch up over time and avoid foreclosure while still keeping your home.

What If You’re Behind on Mortgage Payments?

Falling behind on your mortgage doesn’t automatically mean you’ll lose your home in bankruptcy. Chapter 13 is often the better option for those seeking to retain property while managing past-due balances. As long as you can make ongoing payments and meet the terms of your plan, your lender cannot foreclose during bankruptcy proceedings.

Will Bankruptcy Eliminate My Mortgage?

No. Bankruptcy may eliminate your personal liability for the mortgage debt, but it does not remove the lender’s lien on your home. If you stop making payments after bankruptcy, the lender can still foreclose.

Speak with a Bankruptcy Attorney in Orlando

Your home is likely your most important asset, and bankruptcy doesn’t always mean you’ll lose it. With the right strategy and legal guidance, many Florida residents are able to protect their homes while getting relief from overwhelming debt.

At the Law Office of Paul L. Urich, P.A., we help clients throughout Orlando understand their options and build a plan that protects their property and future. If you're considering bankruptcy, contact us today for a confidential consultation.