Florida Exemptions

Individual Debtors are allowed certain exemptions under the Bankruptcy Law because of which Debtors are allowed to retain certain assets on which creditors cannot make any claims.

Besides Texas, Florida has the most liberal exemption laws in the country.

In Florida, Debtors can keep the following assets:

HOMESTEAD: Under Article X, Section 4 of the Florida Constitution, Florida Residents can keep their home of unlimited value, subject to applicable acreage restrictions, if you have lived in the home for more than 1215 days. If you have lived in the home for less than 1215 days, the exemption under the New Bankruptcy Law is limited to $125,000 in equity. There are other exceptions under the New Law.

PERSONAL PROPERTY: If there is a Florida Homestead, $1000 of personal property is exempt as well as any property owned as tenancy by the entireties, i.e property owned by a husband and wife that meet certain criteria, as long as there are no joint unsecured debts. If no Florida Homestead, each debtor may claim $5,000.00 in personal property.

ANNUITIES: Annuities, life insurance policies, ERISA qualified IRA’s and 401K’s are exempt. Don’t even think about shifting money from a non-exempt mutual or brokerage fund to an IRA or a 401K. This is considered a fraudulent transfer, and a fraud upon your creditors.

AUTOMOBILE: $1000 in equity in one vehicle is exempt.

OTHER EXEMPTIONS: Prepaid college fund, disability income, unemployment compensation, Workman’s Compensation, certain medical equipment, and others are also exempt under Florida Law.

Debtors are advised to consult with their Bankruptcy Attorney before making any type of exemption claim.

Note: The Debtor is required to turnover any assets that is not deemed exempt by the Bankruptcy Court to the Trustee for liquidation in a Chapter 7 case. The Bankruptcy Trustee may, but is not required to allow the Debtor to buy any non-exempt asset back. Failure to turnover non-exempt property may lead to monetary sanctions or in extreme cases a “denial of discharge” of your debts.