Understanding bankruptcy exemptions, how they apply, and what properties they can protect is critical to filing for Chapter 7 in Florida. Florida has some of the largest exemptions found anywhere in the United States. This article will describe in detail Florida exemptions, what is and is not protected, and when those exemptions may come into play when filing for Chapter 7 bankruptcy in Florida.
Before discussing Florida exemptions, it is important to understand why these exemptions matter. It will determine the assets that you can keep after filing for Chapter 7 bankruptcy in Florida. Everything that the debtor (whether it is an individual or a couple) owns becomes part of the bankrupt estate at the point when the debtor files for bankruptcy. Their property-except to the extent that it is exempt, may be sold or liquidated to pay creditors. One of the most life-altering things about Chapter 7 bankruptcies is that they can lead to the loss of property. A good Florida attorney will help you understand the law of bankruptcy in the state of Florida, carry out the legal process without mistakes, and help you avoid unnecessary pitfalls.
In a Hurry? Dial +18-503-850-342 Now!Are Federal Exemptions Permitted in Florida?
Although bankruptcy is a function of federal law, Florida has opted out of federal exemptions. If a bankruptcy person was domiciled in Florida for at least 730 days before the date of bankruptcy, the Florida exemptions will apply. Federal Bankruptcy exemptions are allowed for those not meeting the 730-day rule.
How to Claim Your Exemption for Chapter 7 Bankruptcy?
To claim Florida exemptions in your bankruptcy petition, you will need to have resided within Florida for at least 2 years directly before the date you file for bankruptcy. That is the definition of the 730-day rule, which helps to bar someone from moving states to file bankruptcy in a state with better exemptions. You will need to check if federal exemptions apply or if you can consider exemptions from another state if you don’t meet the 730-day rule. Exemptions are not automatic. In order to claim the Florida exemptions, the exemption must appear in Schedule C.
Bankruptcy exemptions are among the most extensive exemptions in the whole nation, and the most important is the homestead exemption. This protects trustees from taking equity from the primary residence. This also comes with a motor vehicle exemption and property personal exemptions, but it does not exceed a certain amount. There are wildcard exemptions that apply to any property and hold for the types of income, including but not limited to alimony, child support, and spousal support.
Properly claiming the exemptions allows you to attain a significant reduction of your Chapter 7 bankruptcy through the safeguarding of highly prized assets while letting unsecured debts go unattended.
In a Hurry? Dial +18-503-850-342 Now!What is Chapter 7 Bankruptcy Exemption in Florida?
Florida bankruptcy exemption laws provide a list of Florida exemptions. Below you will find a list of Florida exemptions and the Florida exemption statutes and examples of when and how they can be utilized.
Be aware that you must claim or schedule them in bankruptcy schedule C to make any of these exemptions available. Some exemptions for certain types of property, like retirement funds, will cover all value, regardless of how much is in the account. Some exemptions only provide coverage for certain kinds of property, i.e., a certain dollar amount for things like vehicles (below).
Reemployment Assistance or Unemployment Compensation
Florida Statutes Exemption from Unemployment Compensation or Reemployment Assistance. Individuals who want to protect their reemployment assistance, including unemployment benefits, may use this exemption.
Applying for this, it is most often used in the process of protecting money listed under Schedule B Line Number 17 (Deposits of Money) and traced/determined as reemployment assistance or unemployment compensation.
Disability Income Benefit
Anyone who wants to protect their disability income benefits can avail themselves of this exemption. They can exempt 100% of funds. It is most commonly used to protect funds that can be traced/determined as Disability Income Benefits in a bank listed under Schedule B Line Number 17 (Deposits of Money).
Child Support Income
An individual who wants to protect his income from child support can use this exemption. Individuals are allowed to exempt 100% of the funds. This exemption is used most often to protect funds listed on Schedule B, line 17 (Deposits), which can be tracked/determined as Child Support Income.
Veterans Benefit
Individuals who want to protect benefits for Veterans can use this exemption. Individuals can exempt 100% of funds. Most often, this exemption is used to protect funds in an account that can be traced/determined as Veterans Benefits deposited under Schedule B Line Number 17 (Deposits of Money).
Workers Compensation Benefits
Individuals who want to protect their Workers’ Compensation benefits can use this exemption. With this exemption, individuals can be exempt from 100% of said funds. Most often, this exemption is applied to the protection of funds that can be traced/determined as workers ‘ comp benefits in a bank listed under Schedule B line 17 (Deposits of Money).
Health Aids Exemption
Individuals who want to protect their health aids can use this exemption. They must be prescribed. Assets can be exempted 100 percent by individuals under this exemption, the amount generally listed under Schedule B Line 14.
Tax Refund Exemption Earned Income Credit
People can apply for this exemption when they want to protect the earned income credit portion. Usually, earned income credit is carried at Schedule B, Line 28 (Tax refund). B, Line 17 represents money in your account as long as it can be determined that the money you have is the earned income portion of the Tax Refund.
Summing Up!
Understanding income and asset exemptions, plus your legal rights, comes in handy when contemplating the filing of a Chapter 7 bankruptcy in Florida. Florida has some of the most effective exemption protections, but it is also important to understand how to protect your property.
Choosing a reliable bankruptcy lawyer when filing for Chapter 7 in Florida is important. Our bankruptcy attorneys at Bruner Wright PA have years of experience helping clients with the bankruptcy procedure. You will have a lawyer working with you during this hard time.
Contact a bankruptcy attorney today to learn more about Florida bankruptcy exemptions, federal bankruptcy exclusions, personal property tax exemption questions, or anything else regarding your Chapter 7 filing requirements.
In a Hurry? Dial +18-503-850-342 Now!