How Are Florida’s Bankruptcy Exemptions Different from Federal Exemptions?
For anyone who is considering a personal bankruptcy filing — whether a liquidation or reorganization bankruptcy, but especially a liquidation bankruptcy — it is critical to understand which exemptions will apply to your case so that you can determine which of your assets will be exempt. In Chapter 7 liquidation cases, exemptions permit debtors to keep assets — any exempt assets are not liquidated in an individual Chapter 7 filing. In Chapter 13 reorganization cases, no assets are liquidated, but exemptions can still be relevant in determining how much money debtors must repay over the course of their multi-year repayment plan. Accordingly, no matter what type of consumer bankruptcy you are filing for, you should know which exemptions apply to you.
You may be wondering: how are Florida’s bankruptcy exemptions different from federal exemptions, and which ones will I need to use?
Eligibility for Florida’s Exemptions
There are residency requirements to be able to file for bankruptcy in Florida, but those requirements are distinct from the residency requirements to use Florida’s bankruptcy exemptions.
To file for bankruptcy in Florida, you only must have lived in the state for at least 180 days. To use the state’s exemptions generally, you must have lived in the state for at least 730 days prior to filing for bankruptcy. Then, there is another — and longer — timing requirement to know about. In order to use Florida’s homestead exemption, you must have owned the property for at least 1,215 days prior to filing for bankruptcy.
How Florida’s Exemptions Relate to Federal Exemptions
When you are filing for bankruptcy in Florida, you will in general need to plan to use Florida’s state exemptions. Although some states permit debtors to choose between the state and federal exemptions, Florida does not — you must use the state’s exemptions. The only major exception is if you do not meet the residency requirements for Florida’s exemptions. In that case, you would use the state’s exemptions of your previous state of residence or, depending on the state, federal exemptions.
There are a number of differences between Florida’s state exemptions and federal exemptions, but the major one is the homestead exemption — Florida allows debtors to exempt all of the equity in their primary residence, which is significantly more generous than federal law or other states permit. Accordingly, if you own a home outright in Florida or have significant equity in your Florida home, you will want to make sure you are eligible for Florida’s exemptions if you are considering bankruptcy.
Contact Our West Palm Beach Bankruptcy Attorneys Today for Assistance Determining Relevant Exemptions in Your Personal Bankruptcy Filing in Florida
Are you considering a personal bankruptcy filing in South Florida? If so, it will be essential to speak with an attorney who can help you to understand your eligibility for Florida’s bankruptcy exemptions and how those exemptions will be relevant to your specific bankruptcy case. As we discussed above, in order to be eligible for Florida’s exemptions, you must have lived in Florida for a certain period of time prior to filing, and that timeline extends further if you want to use Florida’s homestead exemption. An experienced West Palm Beach bankruptcy lawyer at Kelley Kaplan Delaney & Eller, PLLC can speak with you today about your financial circumstances and your bankruptcy plans, and we can begin working with you on the exemptions relevant to your case.
Source:
leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0200-0299/0222/0222.html
