Florida Bankruptcy Law: Homestead and Other Exempt Property

Under Florida bankruptcy laws, only state exemptions are available to Chapter 7 petitioners. Federal exemptions are not allowable. Chapter 7 allows a petitioner to liquidate in order to satisfy his or her debts. Bankruptcy laws allow the petitioner to retain certain personal and real properties; these properties are considered "exempt." Among Florida's exempt property is the petitioner's homestead.

222.20 - Non-Availability of Federal Bankruptcy Exemptions

Florida's statute expressly disallows federal bankruptcy exemptions:

"In accordance with the provision of s. 522(b) of the Bankruptcy Code of 1978 (11 U.S.C. s. 522(b)), residents of this state shall not be entitled to the federal exemptions provided in s. 522(d) of the Bankruptcy Code of 1978 (11 U.S.C. s. 522(d)). Nothing herein shall affect the exemptions given to residents of this state by the State Constitution and the Florida Statutes."

Allowed Florida Exemptions

Homestead

• 222.01-03, 05 - Real or personal property that includes a mobile or modular home and condominium to unlimited value. Property cannot exceed 1/2 acre in a municipality, or 160 acres elsewhere. The spouse or child of a deceased owner may also claim exemption.

Personal Property

• 222.22 - Assets in qualified tuition programs, medical savings accounts, Coverdell education savings accounts, and hurricane savings accounts
• 222.25 - Motor vehicle (up to $1,000), professionally prescribed health aids, federal tax credits or refunds.
• Constitution 10-4; In re Hawkins, 51 B.R. 348 (S.D. Fla. 1985) - Any personal property up to $1,000. A husband and wife may double exemptions.

Wildcard

• If the debtor receives no homestead exemption, personal property up to $4,000

Wages

• Section 222.11(b)  Disposable earnings of a head of a family greater than $500 a week that includes paid or payable earnings or earnings deposited in any financial institution for up to six months. Earnings from other family members are also exempt.
• 222.21 - Federal government employees' pension payments that are needed for support and were received up to 3 months prior to the bankruptcy.

Pensions

• 222.21 - Pension money and certain tax-exempt funds such as 401s and ERISA-qualified benefits

Public Benefits

• 222.201 - Public assistance, social security, unemployment compensation, and veterans' benefits
• 440.22 - Workers' compensation
• 769.03 - Recoveries for hazardous occupational injuries
• 960.14 - Crime victims' compensation except if seeking to discharge debt for the treatment of a crime-related injury

Alimony and Child Support

• 222.201 - Alimony and child support needed for support.

Insurance

• 222.13 - Life insurance payments to the insured beneficiary
• 222.14 - Life insurance cash surrender value and proceeds from annuity contracts
• 222.18 - Disability or illness benefits
• 632.619 - Fraternal benefit society benefits if received before 10/1/96

Miscellaneous

• 497.56 - Deposits for pre-need funeral contracts
• 769.05 - Damages to employees for injuries incurred in hazardous occupations

Talk with an Attorney

If you are facing bankruptcy in Florida, you generally only are allowed state exemptions. These exemptions include (with stipulations) the homestead, personal property up to $1,000, a motor vehicle up to $1,000, types of insurance contract benefits and other miscellaneous exemptions. Talk with an experienced bankruptcy attorney in Florida to discuss your case and how to maximize your exemptions.