Short answer: In most cases, yes. Florida’s homestead exemption is one of the strongest in the nation — it protects an unlimited amount of equity in your primary residence, as long as the property fits within size limits and you meet residency requirements. If you are current on your mortgage payments and keep paying, you can generally file Chapter 7 bankruptcy in Florida and keep your house while wiping out credit card debt, medical bills, and other unsecured debts.
How Florida’s Homestead Exemption Protects Your Home
When you file Chapter 7, a bankruptcy trustee reviews your assets to see if anything can be sold to pay creditors. Exempt property is off-limits — and in Florida, your homestead is the centerpiece of those protections. Under the Florida Constitution (Article X, Section 4), your primary residence is protected without any dollar cap on equity, provided the property does not exceed:
- Half an acre if it is located inside a municipality, or
- 160 acres if it is located outside a municipality.
This means that whether you have $50,000 or $500,000 of equity in your Hollywood or Broward County home, the equity itself is generally safe from the trustee — a dramatic difference from many other states that cap the homestead at a modest dollar amount.
The Residency Requirements You Must Meet
Two timing rules decide whether you get Florida’s unlimited protection:
- The 730-day rule: To use Florida’s exemptions at all, you generally must have lived in Florida for the 730 days (two years) before filing. If not, the exemptions of your previous state — or federal exemptions — may apply instead.
- The 1,215-day rule: If you acquired your homestead within the 1,215 days (about 40 months) before filing, federal bankruptcy law caps the protected equity. That cap is currently $214,000 (for cases filed between April 1, 2025 and March 31, 2028). Equity above the cap could be at risk.
If you have owned your Florida home for well over 40 months, both rules are typically satisfied and the unlimited exemption applies.
You Must Still Deal With the Mortgage
The homestead exemption protects your equity from unsecured creditors — it does not erase your mortgage. A mortgage is a secured debt: the lender keeps its lien on the house regardless of the bankruptcy. In practice, you have three options in Chapter 7:
- Retain and pay: Stay in the home and keep making regular payments. If you are current, most lenders simply continue the relationship.
- Reaffirm the debt: Sign a reaffirmation agreement that keeps the mortgage legally enforceable against you after discharge. This has pros and cons and should be discussed with your attorney.
- Surrender the home: Walk away and discharge your personal liability on the mortgage — sometimes the right move if the house is deeply underwater or unaffordable.
Important: if you are significantly behind on mortgage payments and want to keep the house, Chapter 13 is usually the better tool, because its 3–5 year repayment plan lets you catch up on arrears while stopping foreclosure.
What If the Property Is Not Your Homestead?
The unlimited exemption only covers your primary residence. Investment properties, vacation homes, and rental units are not homestead property, and non-exempt equity in them can be sold by the trustee in Chapter 7. On the other hand, if you do not claim a homestead exemption, Florida gives you an extra $4,000 wildcard exemption for personal property, on top of the standard $1,000 personal property exemption — a detail that matters for renters and for filers who surrender their home.
Frequently Asked Questions
Will the trustee sell my house in Chapter 7?
Not if the equity is fully exempt under Florida’s homestead exemption and the property meets the size and residency rules. The trustee can only sell assets with non-exempt value. Your attorney will calculate your equity and exemptions before filing so there are no surprises.
Can I keep my house if I’m behind on my mortgage?
Chapter 7 does not provide a mechanism to catch up on missed payments — the lender can eventually resume foreclosure after the case. If you want to keep a home with arrears, Chapter 13 lets you spread the missed payments over a court-approved plan while you stay in the house.
Does the homestead exemption also protect me outside of bankruptcy?
Yes. Florida’s homestead protection applies to most judgment creditors generally, not just in bankruptcy. That is one reason Florida is considered one of the most debtor-friendly states in the country.
Can I keep both my house and my car in Chapter 7?
Often, yes. The homestead exemption covers the house, and Florida’s motor vehicle exemption protects up to $5,000 of vehicle equity. If your car is financed, you can typically keep it by staying current on the loan.
This article is for general informational purposes only and is not legal advice. Every bankruptcy case is different, and exemption planning must be done before you file. If you are worried about losing your home to debt, contact our Hollywood, Florida office for a free consultation — we will review your equity, your mortgage, and your options under Chapter 7 and Chapter 13.