Bankruptcy Exemptions in Florida
The Bankruptcy code allows the debtor to exempt certain property, meaning that you get to keep the property, notwithstanding the bankruptcy. The code itself has a list of exemptions. However, the Bankruptcy Code allows the states to elect to “opt out” of the exemptions allowed by federal law and to instead use the law of the respective state. Florida is one such state which elects to use its own exemptions.
If you are a homeowner, and you qualify to utilize Florida’s bankruptcy exemptions, this state has some of the most generous exemptions for a homeowner. Subject to certain Federal Bankruptcy law limitations, you are entitled to all of the equity in your home.
Florida law also has the following additional exemptions:
$1,000 equity in a single motor vehicle (Fla. St. 222.25(1),
Debtor’s interest in professionally prescribed health aids. (Fl. St. 222.25(2)
The cash surrender value of life insurance policies and the proceeds of annuity contracts are exempt (except where the policy or contract was made for the benefit of a creditor. Fl. St. 222.14
Disability income benefits are exempt. Fl. St. 222.18
There is also a general wildcard $1,000 exemption provided by the homestead provisions of the Florida Constitution. If a person does not claim a homestead exemption for a house, Florida law gives you a $4,000 wildcard exemption. Fl. St. 222.25(4).
Under Fl. St. 222.11, the first $750 of disposable earnings of the wages of the head of household are exempt. Wages in excess are also exempt unless the wage earner agreed in writing and the language of the writing is very specific. For those who are not the head of household, wages may be garnished, but are subject to the federal Consumer Credit Protection Act.
Florida opt out does allow for certain exemptions under Federal bankruptcy law.
Tags: Bankruptcy code, Consumer Credit Protection Act, Federal bankruptcy law, Florida bankruptcy, Florida Constitution, Florida law, Florida's bankruptcy exemptions
Posted in Filing Bankruptcy in Florida