As has been the reality for many facing financial hardship throughout Southern Florida, the burst of the real estate bubble is to blame. This in turn led to an increase in the number of Chapter 7 and Chapter 13 bankruptcies filed. In some cases, those who found themselves in this situation owned property in Florida but reside elsewhere. This was the case for a husband and wife who reside in another state.
In their bankruptcy filing, the man, a lawmaker, and his wife listed two rental properties in Florida as a part of their $1,059,883.94 in assets. The properties’ values were listed as $671,850 and $813,632, respectively. In addition, they listed the home in which they live. Their liabilities were reported as $6,041,855.99.
The rental properties apparently had a lot to do with the Chapter 7 bankruptcy. The more valuable of the two rental properties reportedly failed to make any money for the couple in 2008. Rather, it actually cost them over $15,000. Though the couple stated their intent to keep the home in which they were living, perhaps not surprisingly, they indicated their plan to turn the properties over to be liquidated.
The couple’s bankruptcy was recently completed and they are likely moving forward with their lives.
Many readers may be aware that it is possible to keep one’s home in a Chapter 13 bankruptcy. Quite a few however are probably not aware that, as in this case, it is a possibility in Chapter 7 filings as well. As this case illustrates, the desire to stay in one’s home should not stop someone experiencing financial difficulties from exploring Chapter 7 bankruptcy.
Source: West Virginia Record, “Hunt ditches $6 million in debt through bankruptcy,” Lawrence Smith, Oct. 19, 2012