Legal Question in Bankruptcy in Florida

You've asked a very important but difficult question. The answer depends on a number of factors, and is very detail- driven.

Are both the joint owners filing? Is it a joint debt?

Are the joint owners husband and wife (because there are special protections avialable for property owned by H and W)?

What type of asset is it, i.e. real estate , financial account, other personal property?

Are the debts specifally related to the asset?

The basic rules are:

If a debtor owns an interest in a joint tenancy asset, a debtor's interest will generally become "property of the estate". However, that's generally not true if the asset is held as "joint tenancy by the entireties" which is a special designation for some types of property held by a H and W in Florida. In other words, if only one spouse files and all the debts are just that spouse's, then the property is not included in "property of the estate". If the debts are joint, then the answer is different (some courts have held that it depends on whether there is a creditor with a judgment prior to the Chapter 7 filing).

It's also important to know that the most common assets held jointly is a residence, and in Florida the equity in a home is generally "exempt" from the claims of creditors under the Florida consitution.

You should meet with an experienced attorney (who really knows the rules, not one who beacame a "bankruptcy lawyer" last month!) and provide him or her with a complete list of your assets including how they are titled, your debts, and a list of anyone else who may also be jliable on those debts. Making an error on these issues can be very expensive, so you need to give the right information and get the right answer.

I hope that helps, at least a little.

Robrt Wilcox

(904) 281-0700