Bankruptcy Attorney | FL Bankruptcy Exemptions
Bankruptcy Attorney . Persons filing for bankruptcy in Florida generally use the exemptions provided by Florida law and non-bankruptcy federal law. Florida law provides for exemptions in the Florida Constitution, Florida Statutes and common law.
Real Property
Certain real property, such as a homestead, and personal property are “exempt” – that is, exempt from administration by a chapter 7 bankruptcy trustee or otherwise not taken into consideration in a chapter 13 as to the amount required to be repaid to unsecured creditors.
Personal property of $l,000.00 and $4,000.00 value
Each debtor may “exempt” $l,000.00 of personal property. Another statute also allows each debtor to “exempt” a further $4,000.00 of personal property if he does not claim or receive the benefits of a Florida homestead exemption.
Cars and other Motor Vehicles
In addition to the above general personal property exemption, $l,000.00 in equity, in one car (two for a joint case) or other motor vehicle (such as a motorcycle, truck, trailer, semi-trailer, truck tractor, semi-trailer combination, recreational vehicle, etc.) is “exempt” from the bankruptcy estate. Often this is not even used as many vehicles have no net value (equity) as more is owed on them than they are worth (i.e. you are “upside down”). During and after the bankruptcy, you must, of course, continue to make any payment due for a lien on the vehicle.
Pension Plans, IRAs, and other Retirement Plans
Pension plans, I.R.A.’s, and other retirement plans are generally not part of the estate or may be exempted from the estate (including under the exemption provided in the Bankruptcy Code itself 522 (b)(3)(C)) .
Earned Income Credit Refund
An interest in an IRS earned income credit (“EIC”) whether received or yet to be received is exempt. It also applies to funds in a bank account traceable to such EIC. This exemption does not apply to collection for child support or spousal support. To learn more about bankruptcy exemptions, contact a bankruptcy attorney. -jbublick
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