Bankruptcy Law, Debt Relief

The Most Common Florida Bankruptcy Exemptions

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.