Florida Bankrutcy Exemptions

08/26/14

When a person files for chapter 7 bankruptcy relief in Florida, he is allowed to exempt certain property from his bankruptcy estate. Exempt property generally means property that a person is allowed to keep free from liquidation by the chapter 7 bankruptcy trustee for distribution to creditors.

If a person has lived and been domiciled for a sufficient period of time in Florida, a person is allowed to claim the exemptions provided for under Florida and federal non-bankruptcy law. Florida exemptions include the homestead exemption provided by Article X Section 4 of the Florida Constitution. The homestead exemption is limited in size but not in value unless one of the limitations added in the 2005 bankruptcy code amendments homestead value applies.

Personal property is exempt to the extent of $1,000.00 and a further $4,000.00 in cases where a person does claim or received the benefits of a homestead exemption-. A vehicle is exempt to the extent of $1,000.00 in value.

Certain retirement plans and benefits such as IRAs and 401(k) plans are also generally exempt. Other exemptions include social security benefits and worker's compensation benefits.

A chapter 7 debtor claims his exemptions on schedule C of his bankruptcy schedules. If the chapter 7 bankruptcy trustee or other party does not object to the claim of exemptions, they are deemed allowed.

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