It is fortunate to have equity in the home in Florida, as it offers one of the most generous exemptions in a homestead in the United States. Although, exemptions are offered at the federal level, but the residents of a state must use their state exemptions in case their state decides to create their own exemptions. However, states like Pennsylvania have no exemption in the homestead at all.
In Florida, the property should either be 1-half acre (within the municipality) or 160 acres (outside municipality) to be eligible for a homestead exemption. This benefit is largely unincorporated and is an exceptional benefit for a lot of folks of the Fleming Island. This means that a person can keep a home with $2,000,000 in equity under property exemption, after a bankruptcy filing. Moreover, if the property is an unincorporated area, it can cover many acres of land.
The Constitution of Florida outlines this exemption in Article X, § 4. A previously unincorporated land, now located within a municipality, can still come under homestead unless its owner agrees to include in the municipality.
Although these homestead defining rules are mentioned here in terms of bankruptcy, they are also applicable to the more famous Florida Homestead Taxable Value Exemptions of home value of $25,000 (exempted from all taxes) and an additional exemption (from all taxes except for the ones providing for education) of $25,000.
To know more about your homestead in property and the incorporated or unincorporated status of it, contact the best bankruptcy attorneys of Los Angeles & Dallas, TX, at www.recoverylawgroup.com or on 888-297-6203.