Posts Tagged: ‘bankruptcy exemptions’

The Most Common Florida Bankruptcy Exemptions

January 12, 2018 Posted by kingcade

If you are filing for Chapter 7 bankruptcy in Florida, you can use Florida bankruptcy exemptions to protect your property.  In addition, residents are provided unlimited exemptions for homestead, annuities, and the cash surrender value of a life insurance policy.

Florida has one of the most generous homestead exemptions in the country. To use Florida’s exemptions, you must have resided in Florida for at least 730 days before filing your bankruptcy petition. To claim the full value of the homestead exemption in Florida, you must have owned the property for at least 1,215 days before the bankruptcy filing.

Personal Property Exemptions:  

  • Personal property up to $1,000. Personal property can include such items as furniture, art, and electronics. (Art. 10 Sec. 4, Fl. Constitution)
  • Education savings, health savings, and hurricane savings. (Fla. Stat. Ann. § 222.22)
  • Prescribed health aids. (Fla. Stat. Ann. § 222.25)
  • Prepaid medical savings account and health savings account deposits (Fla. Stat. Ann. § 222.22(2))
  • Tax credits and refunds (Fla. Stat. Ann. § 222.25(3))
  • Funeral costs per Florida’s Preneed Funeral Contract Consumer Protection Trust Fund (Fla. Stat. Ann. § 497.456)
  • Particular partnership property (Fla. Stat. Ann. §§ 620.153, 620.8307)

Florida Motor Vehicle Exemption:

  • Bankruptcy filers can exempt up to $1,000 in motor vehicle equity, more if you are married and filing jointly.

Exemptions for Wages in Florida:

  • Wages of a head of the family are entirely exempt up to $750 per week, or the greater of 75% or 30 times the federal minimum wage.

Pensions and retirement funds are exempt in Florida:

  • ERISA qualified retirement plans and pensions (including 401(k)’s, 403(b)’s, profit sharing and money purchase plans, SEP and SIMPLE IRA’s, and other defined benefit plans) are fully exempt. (11 U.S.C. Section 522; Fla. Stat. Ann. § 222.21.)
  • IRA’s and Roth IRA’s are exempt up to $1,171,650. (11 U.S.C. Section 522(b)(3)(C)(n).)
  • Public employee retirement benefits. (Fla. Stat. Ann. §§ 121.131, 121.055(6)(e).)
  • State and County officers and employees retirement system benefits. (Fla. Stat. Ann. § 122.15.)
  • Firefighter pensions. (Fla. Stat. Ann. § 175.241.)
  • Municipal police pensions. (Fla. Stat. Ann. § 185.25.)
  • Teachers’ retirement benefits. (Fla. Stat. Ann. § 238.15.)

Alimony and Child Support Exemptions:

Alimony and child support, to the extent reasonably necessary for the support of the debtor (the bankruptcy filer) and any dependent of the Debtor, are exempt. (Fla. Stat. Ann. § 222.201.)

Exemptions for Insurance Policies and Annuities:

  • The proceeds of a life insurance policy payable to a specific beneficiary are fully exempt. (Fla. Stat. Ann. § 222.13.)
  • The cash surrender value of a life insurance policy and the proceeds of an annuity contract are fully exempt. However, annuity proceeds resulting from lottery winnings are not exempt. (Fla. Stat. Ann. § 222.14.)
  • Disability income benefits are exempt. (Fla. Stat. Ann. § 222.18.)
  • Fraternal benefit society benefits are exempt. (Fla. Stat. Ann. § 632.619.)

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If you have any questions on the topic of bankruptcy exemptions or are in a financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

Divorce Court Cannot Decide on Bankruptcy Obligations

May 23, 2017 Posted by kingcade

A Superior Court judge in Georgia could not order that a divorce settlement be wiped out in bankruptcy, a federal bankruptcy judge has ruled.  Even though the divorce decree provided that “the property division payments to the Plaintiff shall not be dischargeable in bankruptcy,” Judge W. Homer Drake of the Northern District of Georgia makes it clear that the Georgia court lacked jurisdiction to decide the effect of bankruptcy on the divorce.

There are certain kinds of debts that are non-dischargeable in bankruptcy.  However, these bankruptcy exceptions include support obligations arising from divorce, but do not include property settlements distinct from support.

The divorce decree included provisions that the defendant would pay his ex-wife $1,300 a month for child support and $53,000 “as part of the property division,” the court said. But the decree also said that “the property division payments to the plaintiff shall not be dischargeable in bankruptcy,” it said.

The bankruptcy court rejected the Georgia court’s decree that the obligation would not be dischargeable because it violated public policy. In addition, it found that the state court lacked jurisdiction to make that call.

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If you are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

What Happens to Your Home When You File for Bankruptcy?

February 13, 2017 Posted by kingcade

Bankruptcy gives people a chance for a fresh start and to have their debts forgiven.  Through Chapter 7 bankruptcy, filers are essentially saying they do not have the money to make payments on their debt and want to have their debt eliminated.  As part of the process, consumers may have their assets seized to pay off a portion of their debt.

However, not all assets can be seized.  These exemptions include: retirement accounts and pensions, your home and your car, based on how much they are worth. So, it is possible to file bankruptcy and keep your home and your car. Exemption amounts vary from state to state.  But generally, any assets with equity lower than the exemption amount cannot be seized.

Chapter 13 bankruptcy is a  process where consumers can work out a payment plan over three to five years to pay off their debt. Consumers who file Chapter 13 will not lose their property as long as they keep making payments on time. And consumers who start off filing Chapter 7 bankruptcy but then realize that their property may be seized may be able to switch to Chapter 13 bankruptcy, which would allow them to keep their assets and get current on payments.

Consumers who are thinking about filing for bankruptcy should speak to an attorney and research the bankruptcy exemptions in their state to know exactly how much of their property is at stake.  It is important to know that certain debts, such as student loans, tax debts and child support obligations, cannot typically be discharged in bankruptcy.

If you are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

Related Resources:

https://www.washingtonpost.com/news/get-there/wp/2016/07/26/what-happens-to-your-property-when-you-file-for-bankruptcy/?utm_term=.26292275820e

Common Filing Concerns & Bankruptcy Exemptions

November 24, 2014 Posted by kingcade

One of the most common concerns people have when filing for bankruptcy is that they will lose everything. At Kingcade & Garcia, we understand these concerns and want to put your mind at ease. Since 1996, we have helped more than 15,000 Miami-Dade County clients handle their Chapter 7 and Chapter 13 bankruptcies.

Bankruptcy laws were created to give hard-working people a fresh financial start. Whether you have fallen on hard times as a result of a sudden illness, divorce and / or unemployment, federal bankruptcy laws were created to help consumers and families get back on their feet and provide relief from burdensome debt.

A common question people have about bankruptcy is: What assets will I be able to keep? Many people are mislead to believe that bankruptcy can only make problems worse by causing them to lose their home, vehicles or their ability to ever qualify for credit, again. This could not be further from the truth.

In fact, those filing under Chapter 7 or Chapter 13 can keep almost everything.  Depending on your specific case, Florida bankruptcy laws allow you to keep the following:

• Homes
• Cars
• Retirement accounts
• Pensions
• Wages
• Personal property
• Savings
• Veterans or workers’ compensation benefits

If you have any questions on the topic of bankruptcy exemptions or are in a financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.