Will I lose my rental property in Florida?

I live in NY and I own a rental property in Florida. We visit a couple times a year but it’s most rented out. It’s a large source of income but it doesn’t cover our debt from using credit cards and car payments. Will I lose my rental property in Florida if I file for bankruptcy?

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  1. You could lose the property in Florida but it depends. Depends on how much the property is worth and whether there are any “SECURED” loans on the property. The federal bankruptcy laws allow you a “wildcard” exemption that you could use for this property. However, it’s value is $12,250 plus $1,225. If the Florida home is in joint names (only husband and wife) then these amount can be doubled. For example, if the home had a fair market value of $60,000 and a properly secured mortgage for $40,000 and the deed was only in the husband’s name, then you could have to pay the trustee $6,525 in non exempt property. The trustee’s are usually willing to negotiate a little. If the home was deeded to both husband and wife, then the exemption doubles and the home would be fully protected by the wildcard exemption.

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