Clarifying Contested Foreclosures After Bankruptcy

Apr 16, 2018

Florida Governor Rick Scott recently signed off on Senate Bill 220, a new law addressing the property rights of defendants pertaining to bankruptcy and foreclosure proceedings. DS News spoke to representatives from several Florida-based Legal League 100 law firms to get the inside scoop on what Senate Bill 220 means for the industry.

During the foreclosure process, debtors will sometimes file for bankruptcy. In Florida, when the debtor does this, they must also declare their intentions toward any property that is securing their debt, which can include a home. The debtor has several options, including surrendering the property to the lender or retaining it and making payments to whittle down the debt. But if a debtor does agree to surrender the property in order to clear their mortgage debt, can they then contest the foreclosure to try and delay the process while they remain in the home?

Some Florida debtors have attempted to do so in recent years, and Senate Bill 220 sought to address this problem.

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