Are Savings Accounts Exempt in Bankruptcy Cases?
Anyone who is considering a personal bankruptcy in South Florida should be aware of exemptions available under the Florida Statutes, and how the varied exemptions may be relevant to their bankruptcy filing. Exemptions are relevant to both Chapter 7 and Chapter 13 filers of consumer bankruptcy cases in West Palm Beach and throughout the state, although they are usually particularly important for Chapter 7 filers. In a Chapter 7 case, exemptions determine which assets a debtor can keep — in this type of bankruptcy case, all non-exempt assets are liquidated so that the trustee can pay creditors and so that the debtor can receive a discharge. In Chapter 13 cases, assets are not liquidated, but exemptions can play a role in determining the amount of the debtor’s regular payments as part of their regular repayment plan.
If you are starting to learn about exemptions in connection with your bankruptcy plans, you may be wondering if savings accounts are exempt under Florida law. The short answer is that it depends on the type of savings account. A West Palm Beach bankruptcy attorney at Kelley, Fulton, Kaplan & Eller can explain in more detail.
Certain Types of Savings Accounts Are Exempt
Under Section 222.22 of the Florida Statutes, specific types of savings accounts are exempt, which means they cannot be liquidated in a Chapter 7 bankruptcy case and will not be used to determine your assets in relation to the amount of a Chapter 13 plan. According to the Florida Statutes, you can exempt all of the following types of savings accounts:
- Qualified tuition program assets;
- Medical savings accounts (or health savings accounts, often described briefly as HSAs);
- Coverdell education savings accounts; and
- Hurricane savings accounts.
In addition, if you consider certain retirement accounts or pension accounts as “savings accounts,” then these are also likely to be exempt under Florida Statutes Section 222.21. To ensure that all of your retirement accounts and/or pensions are exempt, it is important to seek advice from an attorney as soon as possible.
Regular Savings Accounts Are Not Exempt
Any assets that you have in an ordinary savings account at your bank are not exempt under the Florida Statutes and Florida exemptions. However, if these are assets you want to keep, you may be able to exempt some or all of the money in a generic savings account through the Florida “wildcard” exemption. The total value of the wildcard exemption will depend on whether or not you make use of Florida’s homestead exemption, and an attorney can advise you.
Contact Our West Palm Beach Bankruptcy Lawyers Today
If you are considering a personal bankruptcy filing in South Florida and you have any questions or concerns about exemptions under the Florida Statutes that are relevant to you, it is important to seek legal advice. While exemptions are often most significant in Chapter 7 bankruptcy cases, they are also relevant to Chapter 13 cases, so it is critical to know which accounts you have that may be exempt according to Florida law. One of the experienced West Palm Beach bankruptcy attorneys at Kelley, Fulton, Kaplan & Eller can discuss these issues and other matters related to your bankruptcy case today. Contact us for more information about how we can assist you.
Source:
leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&Search_String=&URL=0200-0299/0222/Sections/0222.22.html
