What Property Counts for Florida’s “Wildcard” Exemption?

Are you currently considering a personal bankruptcy filing in South Florida? If so, you will most likely be filing for either Chapter 7 bankruptcy or Chapter 13 bankruptcy, and Florida’s bankruptcy exemptions will be something that you must learn more about for your case. Most bankruptcy exemptions in Florida that are available to individual debtors exist in the Florida Statutes, although a small number of federal exemptions are also applicable to Florida debtors’ cases. In a Chapter 7 bankruptcy, exemptions allow a debtor to keep property and to avoid having it liquidated  —  only non-exempt assets are liquidated in a Chapter 7 bankruptcy case. In a Chapter 13 case, no assets are liquidated, but exemptions can also be relevant for determining the amount that must be repaid in the debtor’s repayment plan.

One important exemption that you should know about is commonly called the “wildcard” exemption. What is this exemption, and what kind of property can be exempted through it? Our West Palm Beach bankruptcy lawyers can tell you more.

“Debtor’s Interest in Personal Property”

The Florida Statutes allow for a wide range of exemptions for assets in a bankruptcy case, including a homestead exemption (that allows debtors to exempt all of the equity in their home if they qualify), pensions and retirement accounts, up to $5,000 in a motor vehicle, and more. The “wildcard” exemption is listed under Section 222.25 of the Florida Statutes, which is the exemption section for “other individual property of natural persons exempt from legal process.”

The “wildcard” exemption is the last in this section. Under Section 222.25(4), “the following property is exempt from attachment, garnishment, or other legal process” including bankruptcy liquidation:

“A debtor’s interest in personal property, not to exceed $4,000, if the debtor does not claim or receive benefits of a homestead exemption.”

In short, this “wildcard” exemption allows you to exempt up to $4,000 of any assets of your choosing if you do not claim the homestead exemption to exempt the equity in your home.

What Types of Assets Can Be Exempted with the Wildcard Exemption?

Any person property of your choosing can be exempted with the “wildcard” exemption if you are eligible to use it.

You can exempt many different types of assets, tangible and intangible, up to the $4,000 amount, or you can exempt a single asset valued at $4,000. The choice is entirely yours.

Contact Our West Palm Beach Bankruptcy Attorneys Today

If you are thinking about filing for personal bankruptcy in South Florida, it is extremely important to understand how Florida’s bankruptcy exemptions will apply to your case. While exemptions are crucial in Chapter 7 cases because they allow debtors to keep various types of assets, they can also be very important to determining the amounts that will be paid in your repayment plan and the amounts of nonpriority unsecured debt that will ultimately be eligible for discharge. You should discuss the specific details of your case with an experienced West Palm Beach bankruptcy lawyer at Kelley Kaplan Delaney & Eller, PLLC as soon as possible. Contact our firm to learn more about the bankruptcy services we provide to individuals and married couples considering Chapter 7, Chapter 13, and other types of personal bankruptcy.

Source:

leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0200-0299/0222/Sections/0222.25.html