Hillsborough County Lawyers Counseling Clients About Bankruptcy Exemptions
As bankruptcy attorneys, one of the most common questions our clients ask is: What can I keep in bankruptcy? The answer to this question depends on many factors. Generally speaking, Chapter 7 bankruptcy is supposed to represent a fresh start. Bankruptcy is not supposed to leave you with nothing. Federal bankruptcy laws and Florida laws exempt certain assets from bankruptcy. There are substantial differences between these laws. If you are thinking about filing for bankruptcy, our attorneys can think strategically and maximize your exempt assets under the law.
What Are the Florida Bankruptcy Exemptions?
First off, in order to be eligible for Florida's bankruptcy exemptions, you need to have lived in Florida for the previous two years. Perhaps the most important feature of Florida's bankruptcy exemptions is the homestead exemption. Florida is known for having one of the most generous homestead exemptions in the country. This exemption is limited only by federal law, which states that any equity acquired in the 1215 days prior to filing for bankruptcy that exceeds $136,875 is not exempt.
In addition to the homestead exemption, Florida allows for a $1,000 exemption in the value of an automobile and a $1,000 exemption for personal property. If you do not use the homestead exemption, you will be able to make use of a $4,000 "wild card" exemption. In addition to these exemptions, certain other benefits, including health aids, pensions, Social Security and unemployment benefits are exempt.
What Are the Federal Bankruptcy Exemptions?
The federal homestead exemption only exempts $21,165 in value. By and large, the other exemptions are more generous than Florida exemptions. For instance, federal exemptions allow one to exempt up to $3,450 in a motor vehicle. Federal exemptions allow you to exempt up to $11,525, with no single item up to $550. Retirement accounts are exempt as well.
You cannot pick and choose parts of state and federal exemptions. Rather, you will have to pick one set of exemptions. Our law firm will help you decide what allows you to keep more of your property. Hopefully, the only thing you will have to get rid of is your debt.
Contact Nicole M. Cameron, P.A., Today
Call 813-645-8787 or e-mail our attorneys to schedule your free initial consultation.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.