Filing for bankruptcy can be a challenging decision, and understanding how it impacts your assets is crucial. In Florida, bankruptcy laws provide certain exemptions that allow individuals to protect specific assets from liquidation. In this blog, Bankruptcy Attorney Colin Lloyd and Bankruptcy Attorney Justin Lefko, explain what assets you may be able to keep in Chapter 7 bankruptcy in Florida.
What assets can you keep in Chapter 7 bankruptcy?
Attorney Colin Lloyd and Attorney Justin Lefko specialize in bankruptcy law, including Chapter 7 and Chapter 13. While this article is intended to provide high-level information about what assets you can keep in Chapter 7 bankruptcy, we highly recommend you call our office for any questions you may have. Each bankruptcy case is unique; therefore, what assets you can keep in Chapter 7 bankruptcy will depend on your individual situation. We have offices in Fort Pierce, Port St. Lucie, Vero Beach, and Okeechobee, and we offer free, no-obligation consultations.
Call (866) 930-6435 now to speak with our bankruptcy attorneys.
Below, we identify the 10 types of assets you may be eligible to keep in Chapter 7 bankruptcy in Florida.
1. Homestead exemption
Florida is well-known for its generous homestead exemption, allowing individuals filing for bankruptcy to protect their primary residence. The exemption covers an unlimited value for a home’s equity, provided it meets certain size limitations and is located on less than half an acre in a municipality or 160 acres elsewhere.
2. Personal property exemptions
Certain personal property is safeguarded under Florida’s bankruptcy laws. This includes furniture, appliances, clothing, and other household items up to a specified value. Additionally, specific exemptions exist for motor vehicles, making it possible to retain your car or truck in many bankruptcy cases.
3. Wildcard exemption
Florida offers a wildcard exemption that allows filers to protect any personal property of their choosing, up to a certain value. This versatile exemption can be applied to various assets, providing flexibility in protecting items not covered by other exemptions.
4. Wages and earnings
Florida law protects a significant portion of an individual’s wages and earnings from garnishment, even in the context of bankruptcy. This exemption ensures that filers can maintain a source of income to cover necessary living expenses.
5. Retirement accounts
Retirement accounts such as 401(k)s, IRAs, and pensions are generally exempt from liquidation in bankruptcy. This allows individuals to safeguard their retirement savings and maintain financial security for the future.
6. Tools of the trade
Individuals who rely on specific tools or equipment for their profession may be able to exempt these assets from the bankruptcy process. This provision ensures that individuals can continue working and earning a living in their chosen field.
7. Prepaid college plans
Florida provides an exemption for prepaid college plans, allowing filers to protect funds set aside for educational expenses. This exemption supports the continuity of education for the filer or their dependents.
8. Health Savings Accounts (HSAs):
Funds held in Health Savings Accounts for medical expenses are typically exempt from liquidation in bankruptcy. This exemption helps ensure that individuals can continue to meet their healthcare needs during and after the bankruptcy process.
9. Life insurance cash value
The cash value of life insurance policies is often exempt in bankruptcy, providing a layer of protection for individuals who have invested in life insurance coverage.
10. Public benefits
Certain public benefits, such as Social Security, unemployment benefits, and public assistance, are generally exempt from liquidation in bankruptcy. This ensures that individuals can maintain a basic standard of living.
Have questions about filing for bankruptcy in Fort Pierce, Port St. Lucie or Vero Beach?
Call 866-930-6435 for a free consultation with our bankruptcy attorneys
Filing for bankruptcy is not an easy decision. However, bankruptcy affords tremendous benefits for individuals or small businesses that are overwhelmed with debt.
If you are considering filing for bankruptcy in Fort Pierce, Port St. Lucie or Vero Beach, you can speak with our bankruptcy attorneys at no-charge with a free consultation. For over 25 years, our bankruptcy attorneys have helped thousands of individuals and small businesses throughout Florida.
Why choose Hoskins, Turco, Lloyd & Lloyd?
- Expertise: Our team specializes in bankruptcy law and has a proven track record of successful cases.
- Personalized approach: We understand that each situation is unique, and we craft strategies that fit your specific needs.
- Compassionate support: Facing financial challenges is stressful, and we provide the compassionate support you deserve.
Take the first step to financial freedom. Speak with one of our bankruptcy attorneys today. Call 866-930-6435 now.