Bankruptcy Law Questions? Ask a Bankruptcy Lawyer Now.
In order to stop the foreclosure proceeding a person can file bankruptcy, either Chapter 7 or Chapter 13. However, in order to keep your home in a Chapter 7 you "reaffirm" the debt, but you can only reaffirm the debt if you are current on your payments. To file a chapter 13, you must have enough disposable income at the end of each month to show that you can make the confirmed plan and monthly payments. You do not have to be current in the payments, they get rolled into the plan, but you do have to be employed.
It seems you are caught in the middle somewhere. If you were able to get employment, the Chapter 13 would help you.
You have unlimited homestead protection in Florida, because you have owned your home long enough, so your equity would be protected if you did file either Chapter of bankruptcy.
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).