Florida Asset Protection : Asset Protection Law & Planning in Florida - Florida Homestead Exemption

A caller said he was angry at his homeowners association because it had raised monthly dues to compensate for revenues lost from neighbors who were abandoning their home to foreclosure. He said that he owned his own home free and clear and that he wanted to stop paying his HOA dues in protest against the increased assessments. His wanted to know whether HOA could foreclose on his home to collect dues. The caller told me he assumed that the Constitutional homestead provision protected his home from forced sale initiated by an HOA lien. I told the caller he should pay his HOA dues.

Continue Reading...

• Email This
• Print
• Comments (8)
• Share Link

A large percentage of the asset protection inquiries I have received in the past year have been from people concerned about a mortgage foreclosure on one or more of their properties. Most people who contact me are interested in asset protection from deficiency judgments. One of the issues I discuss with my clients facing a foreclosure and a potential deficiency claim is whether the homeowner should hire an attorney to defend the foreclosure even though the homeowner is  unable, or unwilling, to continue making mortgage payments. There are advantages and disadvantages to foreclosure defense, and the decision to defend or default depends on the individual debtor's situation and his assets. I found blog post  by the Florida law firm of Parker and DuFresne in Jacksonville which post  discusses legal defenses to a foreclosure action even when the homeowner is behind in payments. I am providing an  excerpt from the post below so that homeowners can learn how some attorneys defend foreclosure suits.

Continue Reading...

• Email This
• Print
• Comments (14)
• Trackbacks
• Share Link

Many asset protection clients are concerned about involuntary bankruptcy. Involuntary bankruptcy can deprive debtors of some asset protections which are effective in the creditor's collection efforts in state court proceedings. For instance, homestead protection is unlimited in state court but is restricted in amount and by time in a bankruptcy court. Debtors with otherwise effective asset protection plans often ask whether a single, aggressive creditor forcing them into bankruptcy court. The general rule is that one creditor cannot force an involuntary bankruptcy in order to collect the debt.

Continue Reading...

• Email This
• Print
• Comments
• Trackbacks
• Share Link

Bank accounts owned jointly by a husband and wife are exempt from the individual creditors of either spouse as tenants by entireties property. Today, one of may clients described a joint bank account that was titled in the name of their respective living trusts. The account was owned by the Husband, as trustee of husband's living trust and Wife, as trustee of wife's living trust. We discussed the issue of whether a bank account owned by spouse's living trusts, rather than the spouses' individual names, is a protected entireties accounts.

Continue Reading...

• Email This
• Print
• Comments (1)
• Trackbacks
• Share Link