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Roger, Attorney
Category: Bankruptcy Law
Satisfied Customers: 31603
Experience:  BV Rated by Martindale-Hubbell; SuperLawyer rating by Thompson-Reuters
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Deficiency Judgments on Bankrupt Exempt Home

Customer Question

I filed bankruptcy in northwest Florida in 2010 and listed my home in the bankruptcy. My home is homestead exempt. I have had the home listed for short sale and now the bank may forclose on the home. What is the extent of my liability on this home? It was my understanding that the bankruptcy, since the home was listed on it even though exempt, protects my liability. Can the bank come back on me for a deficiency judgement?
Submitted: 6 years ago.
Category: Bankruptcy Law
Expert:  Roger replied 6 years ago.

Hi - my name is Kirk and I'm a Bankruptcy litigation attorney here to assist you.


Did you reaffirm the debt or include the debt in your bankruptcy?

Customer: replied 6 years ago.
I included it in bankruptcy but home is homestead exempt. I did not reaffirm.
Expert:  Roger replied 6 years ago.

The homestead exemption is to allow you to try and keep the property instead of losing it in bankruptcy.


However, if you didn't exercise your exemption and reaffirm the debt - in other words, you were willing to let the property go back to the bank - any deficiency would be discharged through your bankruptcy as an unsecured debt.

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