“Other” Individual Property Exemptions in Bankruptcy
When an individual files for bankruptcy in Florida, that individual will need to know about exemptions and how those exemptions will be relevant to their bankruptcy case. In a Chapter 7 individual bankruptcy, exemptions allow a debtor to retain certain assets — in this type of liquidation bankruptcy, only non-exempt assets are liquidated. Accordingly, any exempt assets — meaning assets for which the debtor can claim an exemption — are not liquidated and the debtor gets to keep those assets. In a Chapter 13 bankruptcy, although no assets are liquidated by virtue of this type of bankruptcy being a reorganization bankruptcy, exemptions may reduce the total amount a debtor must pay as part of their reorganization plan.
Nearly all exemptions that are available to debtors in Florida are listed under Chapter 222 of the Florida Statutes. Our bankruptcy attorneys in West Palm Beach want to provide you with more information about a specific list of exemptions under Section 222.25 of the Florida Statutes known as “other individual property of natural persons exempt from legal process.”
What Counts as “Other” Individual Property?
Chapter 222 of the Florida Statutes specifically addresses exemptions for equity in a debtor’s home, wages, life insurance policies, unemployment compensation, disability benefits, assets in qualified tuition programs and other savings accounts, pensions, and more. Then, under Section 222.25 of the Florida Statutes, there is a list of four exemptions for “other individual property,” which includes:
- 1) Up to $5,000 of a debtor’s interest in a single motor vehicle (which can mean an automobile, motorcycle, truck, trailer, semi truck and trailer or a combination of them, or a recreational vehicle);
- 2) Debtor’s interest in professionally prescribed health aids;
- 3) Debtor’s interest in the earned income tax credit; and
- 4) Up to $4,000 of a debtor’s interest in personal property of the debtor’s choice if the debtor does not use the homestead exemption.
The first three are exemptions that a debtor can claim regardless of the other exemptions under state or federal law that the debtor is claiming. As you can see, however, the fourth exemption listed above — commonly known as the “wildcard exemption” — only applies to a bankruptcy case if the debtor is not claiming the homestead exemption. To determine your eligibility for any of these “other” personal property exemptions, you should discuss the specific details of your case with a bankruptcy lawyer in Florida.
Contact a West Palm Beach Bankruptcy Attorney for Assistance
If you are planning to file for bankruptcy in South Florida and have any questions about the exemptions that will be applicable to your case, it is important to seek legal advice. As we noted above, exemptions can allow individual debtors in Chapter 7 to keep property that would otherwise be liquidated as part of the bankruptcy case process, and exemptions can play a role in determining the details of a repayment plan in a Chapter 13 bankruptcy case. Whether you have questions or concerns about specific individual property exemptions or have more general inquiries about your personal bankruptcy filing, one of the experienced West Palm Beach bankruptcy lawyers at Kelley Kaplan Delaney & Eller, PLLC can assist you. Contact our firm today.
Source:
leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0200-0299/0222/Sections/0222.25.html
