How Can I Protect My Property If I File for Chapter 7 Bankruptcy?
If you are considering a Chapter 7 bankruptcy filing, you likely already know that you will be filing for liquidation bankruptcy. In a liquidation bankruptcy, all non-exempt assets will be liquidated so that creditors can be repaid as fully as possible and so that you can receive a discharge of your existing debt. Many people mistakenly assume that they will lose all of their property if they file for Chapter 7 bankruptcy, but this is a myth. In fact, you can protect many different assets by taking advantage of Florida’s numerous bankruptcy exemptions.
To determine the specific Florida bankruptcy exemptions that are likely to apply to your case, you should get in touch with one of our experienced West Palm Beach bankruptcy attorneys as soon as possible. In the meantime, we can tell you about some of the most commonly used bankruptcy exemptions and how they can help you to protect your property if you file for Chapter 7 bankruptcy.
Exemptions for Individuals Filing for Chapter 7 Bankruptcy in Florida
When an individual (i.e., a consumer) files for Chapter 7 bankruptcy in Florida, they are eligible to claim various exemptions that exist under Florida law. These exemptions allow them to “exempt” (or protect) certain assets from liquidation in a Chapter 7 bankruptcy case. There is no “catch” to these exemptions, either — they apply to individuals who are filing for a liquidation bankruptcy. It is important to be aware, however, that exemptions are not applicable to Chapter 7 business bankruptcy cases. These exemptions are designed for individuals or married couples who are filing for liquidation bankruptcy.
The property that is not exempt will be liquidated so that creditors can receive some type of repayment for the debt you owe in order of their priority. All exempt assets will be protected and will not be liquidated.
Common Florida Bankruptcy Exemptions for Consumers
There are a very wide range of Florida bankruptcy exemptions, so it will be essential to go over all of your assets with a bankruptcy lawyer to determine if any exemptions are applicable. The following are just some of those exemptions, which are commonly used by debtors filing for Chapter 7 bankruptcy in South Florida:
- Homestead exemption: If you have resided in Florida for at least 1,215 days before filing for bankruptcy, you can exempt all of the equity in your home;
- Motor vehicle exemption: You can exempt up to $5,000 equity in your motor vehicle;
- Personal property exemption: You can exempt up to $1,000 of any assets of your choosing, or up to $4,000 if you do not use the homestead exemption;
- Education and health savings accounts;
- Retirement benefits and pensions;
- Wages exemption of up to $750 per week (or 75 percent or 30 times the federal minimum wage, whichever comes out to more money);
- Veterans’ benefits, workers’ compensation, Social Security benefits, and other public benefits; and
- Child support or alimony reasonably necessary for your support.
Contact a West Palm Beach Bankruptcy Lawyer Today
Understanding the details of Chapter 7 bankruptcy cases can be complicated, and when it comes to Florida bankruptcy exemptions, it is crucial to have an experienced West Palm Beach bankruptcy attorney at Kelley, Fulton, Kaplan & Eller on your side to ensure that you claim all available and relevant exemptions based on your assets and the specific facts of your case. If you have questions about applicable exemptions before filing for Chapter 7 bankruptcy, or if you need assistance claiming exemptions under Florida law, our firm is here to help. Contact us today to learn more about how we can assist you with all aspects of your Chapter 7 bankruptcy case in South Florida.
Sources:
leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0200-0299/0222/Sections/0222.22.html
law.cornell.edu/uscode/text/11
