bankruptsy law in fl?

Question

hi! this question is regarding my sister.her husband just passed away this friday 07/13. he was self employed owned a house (on mortgage), have a 3yr old daughter. Someone here told me that the best thing for my sis to do is to file a personal bankruptsy and according to the Florida law she will not loose the house and might have to give up on the cars. but i am trying to find out more info. she certainly can not take care of the bussines because she or anyone else does not know anything about it. So. i am basically trying to find out answers that coud help her in this situation where she can save the house this way she and her daughter have a home. rest she can sell the bussiness and work. so any and all advice would be very greatfull , thank you all.

Answer 1

First things first. Find out if he had a will or a trust set up. If he has a will or trust, this will dictate in court how to handle the property and business.

Second, do you know if your sister is on the title?
If she is, does it state joint tenancy, tenants in common, or did he just take it as a married man?

Third, do no file a personal bankruptcy. She doesn't need to and it won't protect her from anything.

Even though he was self employed, this does not mean he wasn't thinking ahead.

Not all debts are automatically paid, and if there were any auto loans, they have to be brought up to date and can be put in your sisters name if she can qualify for a loan.

If there is no will or trust, then it probably will go through Probate. Do not be afraid if you have to do this. You can either hire an attorney, or you can do it yourself.

Below is a website that explains Probate so in case you need information you can find it easy.

http://estate.findlaw.com/probate/probate-overview/

Hold off on selling the business, because that can be a source of income which you may need later on.

Usually the only problems that can occur with probate is when all the relatives come out of the woodwork so that is why I suggest you check to see if he has a will or trust.

Now is she on the mortgage? If she is she needs to contact the lender and she will probably have to either refinance or qualify for a loan on her own.

Hold off until she can think clearly. Do not try to rush through everything. The business can take care of itself for a few days more than likely.

Help her by reassuring her that right now may be tough, but once over this hump, she will have your support, love and understanding in any of hte decisions she will have to make. Tell her not to worry about her daughter and how she feels. She might tell her she sees her father or hears him and that is his way of taking care of her. Don't be alarmed, kids are very sensitive. I'm not trying to be funny or odd by saying such a thing.

I'm sorry for her loss and you are all in my prayers.

If your sister or you or your family need an ear, I'm here. You can email me anytime. Strangers have a way to help when you least expect them to.

Answer 2

My condolences to your family.

This is a tough time for everyone so it's important that nobody rush to judgment until they can begin to think clearly.

Maybe your sis can't run the business but maybe she can hire someone to run it for her. This may help keep money coming in while she assess her options such as sale of the business, etc.

While it is true that FL allows unlimited equity in a primary home when filing bankruptcy, if the mortgage payments are not paid it can still be taken by foreclosure. Filing bankruptcy will NOT include the mortgage, only unsecured debt.

Your sister should consult with an attorney, CPA, or estate planner to assess her options. Rushing to bankruptcy without intelligently assessing her situation would probably the the worst thing that she could do.