702.12, F.S. – Florida Passes Bill to Stop Bankruptcy Debtors From “Having Their Cake and Eating It Too”

702.12, F.S. – A new Florida law signed Monday will allow documents filed in federal bankruptcy proceedings to be admitted as evidence in foreclosure cases, barring homeowners who have agreed to surrender property in bankruptcy court from challenging foreclosure proceedings on the property.

Florida Gov. Rick Scott signed S.B. 220 into law, which authorizes lienholders to introduce into a foreclosure proceeding bankruptcy documents showing a debtor surrendered the property at issue in the foreclosure.

702.12, F.S. Actions in Foreclosure.

(1)(a) A lienholder, in an action to foreclose a mortgage , may submit any document the defendant filed under penalty of perjury in the defendant’s bankruptcy case for use as an admission by the defendant.

(b) A rebuttable presumption that  the defendant has waived any defense to the  foreclosure is created if a lienholder submits documents filed in the defendant’s bankruptcy case which:

1. Evidence the defendant’s intention to surrender to the lienholder the property that is the subject of the foreclosure;

2. Have not been withdrawn by the defendant; and

3. Show that a final order has been entered in the defendant’s bankruptcy case which discharges the defendant’s debts or confirms the defendant’s repayment plan that provides for the surrender of the property.

(2) Pursuant to s. 90.203, a court shall take judicial notice  of an order entered in a bankruptcy case upon the request of a lienholder.

(3) This section does not preclude the defendant in a foreclosure action from raising a defense based upon the lienholder’s action or inaction subsequent to the filing of the document filed in the bankruptcy case which evidenced the defendant’s intention to surrender the mortgaged property to the lienholder.

(4) This section applies to any foreclosure action filed on or after October1, 2018.

Full PDF version of the bill below…

SB 220: Bankruptcy Matters in Foreclosure Proceedings


If you are in Florida and are looking for help with your foreclosure, especially your foreclosure trial, call us at 1-833-FLA-ATTY (1-833-352-2889) for a FREE CONSULTATION. Let the lawyers and staff at The Law Offices James R. Ackley, P.A. serve you!

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