Applying Exemptions to Your Florida Bankruptcy Case
South Florida residents who file for personal bankruptcy will typically file for either Chapter 7 bankruptcy, which is a type of liquidation bankruptcy, or Chapter 13 bankruptcy, which is a form of reorganization bankruptcy. In either type of bankruptcy filing, you will need to work with a bankruptcy attorney to determine how exemptions can apply to your case. Exemptions are especially important in a Chapter 7 liquidation bankruptcy since they allow you to keep property while other non-exempt assets are liquidated. At the same time, applying exemptions can result in a lower repayment plan in a Chapter 13 reorganization bankruptcy.
How do you apply exemptions to your Florida bankruptcy case? Our West Palm Beach bankruptcy attorneys can explain in more detail below, and we can discuss the specifics of your case with you today.
Florida State Exemptions Versus Federal Exemptions
Before you can apply exemptions, it is essential to understand what exemptions are available to you.
There are state exemptions set forth in Chapter 222 of the Florida Statutes, and there are also federal exemptions. Some states permit debtors to choose between state exemptions and federal exemptions, but that is not the case in Florida — Florida debtors must use the state exemptions listed in the Florida Statutes. However, the Florida Statutes do allow debtors to apply a select few federal exemptions to their bankruptcy cases, most notably for tax exempt retirement accounts such as 401(k), 403(b), and traditional and Roth IRAs.
Learn Which Florida Exemptions Are Relevant to You
Not all available exemptions may be relevant to your case. There may be listed exemptions under Chapter 222 of the Florida Statutes for assets that you do not own, for example. It is important to know, however, that any available exemptions in the Florida Statutes are exemptions that you can apply to your case — there is not a limit to applying exemptions.
In a Chapter 7 case, that means any available exemptions will allow you to keep the exempt assets (and those assets will not be liquidated). In a Chapter 13 case, that means you will not need to count the assets when determining the total amount that must be repaid in your repayment plan.
The following are commonly applied Florida exemptions:
- Homestead exemption for the equity in your home;
- Motor vehicle exemption;
- Personal property exemption;
- Health savings account exemption;
- Education savings exemption;
- Hurricane savings exemption;
- Public employee pension exemption; and
- Retirement account exemption.
Filling Out Bankruptcy Exemption Schedule
In addition to numerous other schedules (i.e., forms) that you will need to fill out and file with the bankruptcy court as part of your bankruptcy case, you will formally apply relevant exemptions by filling out “Schedule C: The Property You Claim as Exempt.”
Contact a West Palm Beach Bankruptcy Attorney for Assistance
Do you have questions about relevant bankruptcy exemptions for your case? One of the experienced West Palm Beach bankruptcy lawyers at Kelley Kaplan Delaney & Eller, PLLC can begin working with you on your bankruptcy filing today. Contact us for more information about how we can assist you with exemptions and all other aspects of your bankruptcy case.
Sources:
leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&URL=0200-0299/0222/0222.html
uscourts.gov/forms-rules/forms/schedule-c-property-you-claim-exempt-individuals
