Legal Question in Bankruptcy in Florida

Need some info about assets you're allowed to keep if you file.

We just moved to Fl.July my husband hasn't found a job yet & our bills are getting backed up. we are in heavy debt & belonged to a credit management which I just had to cancel. Our home is debt free worth about 60,000 We lease our car we just got in March & want to keep it we can make the payments on it if we could wipe out te other. We also have an IRA that we want to save for retirement. We need to know can we file bankruptcy & keep our car ,house, & IRA. THANK YOU


Asked on 9/12/00, 9:43 am

1 Answer from Attorneys
Michael Duggar Buchalter & Duggar

Re: Need some info about assets you're allowed to keep if you file.

Let's do the easy ones first. The lease car can be assumed in a bankruptcy as there is no issue regarding any equity value in a leased vehicle. The IRA is protected as a retirement account under Florida Statutes 222.21. My only concern is about your house. Normally Article 10, Section 4 of the Florida Constitution protects your homestead and all the equity in the homestead in a bankruptcy. You did not explain how your house came to be paid in full. Did you pay for the house from the proceeds of the sale of your former house? The issue is the use of non-exempt funds (such as a savings account) to purchase exempt property(like your home). Some jurisdictions question these transfers as fraudulent transfers. My suggestion is that you sit down with a bankruptcy practitioner in your area and discuss the purchase of the home. Good luck to you!

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Answered on 10/16/00, 9:09 am


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