Loan Modification v. Bankruptcy in Florida

        If you are a South Florida homeowner, and are in foreclosure, you may have trouble meeting other financial obligations besides just your mortgage. Your first step would be to consult a Miami Dade Foreclosure attorney. If however, a final judgment has already been entered and your Miami-Dade County property has a foreclosure sale date, bankruptcy may be an option. If your property has been foreclosed, the lender may proceed with a deficiency judgment to recover the difference between the final judgment entered and the current market value of your property.  Like most South Florida Homeowners, this amount is likely to be very large due to the downward spiral of the real estate market in the last couple of years. The deficiency judgment, coupled with everyday living expenses may prove too difficult to meet. If this is the case, filing for bankruptcy may be the most viable option.

            Your income and financial position will determine whether you are eligible to file for bankruptcy. In order to determine eligibility, a bankruptcy means test is applied to your financial situation. When determining eligibility several factors are considered in conjunction with your household income. The means test considers household income, household size, living expenses, the number of vehicles operated by your household and whether you are married, among others. The aforementioned factors are compared to averages of the State and County in which you reside published by the US Government.  Your financial information determines the US Government deduction standards to apply. To determine if bankruptcy is an option for you, consult a South Florida attorney to discuss all your options.


Ray Garcia, Esq.

Board Certified in Real Estate Law by the Florida Bar


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Law Office of Ray Garcia, P.A.

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