Bankruptcy Exemptions in Florida
Bankruptcy Exemptions in Florida
Some people are under the mistaken impression that by filing for bankruptcy they will lose all of
their property. This is not true. In fact, the entire purpose of the bankruptcy system is to provide
a fresh start, allowing you to move beyond debt in a fair and balanced manner without losing all
There are various bankruptcy exemptions built into the Chapter 7 or Chapter 13 Bankruptcy
process, allowing you to keep property while still obtaining debt relief or working out a
sustainable repayment plan.
A bankruptcy attorney can explain exactly what exemptions may apply in your case and
even explain your options for buying back non-exempt assets following a sale. Under Florida
law, debtors are required to use Florida-specific exemptions (instead of federal exemptions).
However, Florida actually has one of the most generous exemption schemes in the country,
which make seeking bankruptcy protection in the state a prudent choice for many residents.
Common Florida Bankruptcy Exemptions
In Florida, the following are examples of property that will be exempt from bankruptcy
proceedings. This means residents can keep this property regardless of their debts. These
exemptions are sometimes automatic, but at times they must also be claimed at the time of
1. Homestead: This exemption will protect your home and any equity you may have from
general unsecured creditors if you have lived in and owned for at least 1,215 days prior to filing
for bankruptcy. If you have lived in the home for less than the required time, you can still seek
an exemption up to $146,450 in equity of the home.
-If you are not claiming a homestead interest, then Florida law allows every individual to
claim an additional “wildcard” exemption of $4000 of personal property.
2. Motor vehicles: As a debtor, you are allowed to claim the equity of a vehicle up to $1,000
as long as you are on the title. Husbands and wives filing for bankruptcy jointly may double that
amount (i.e. $2,000 in vehicle equity will be allowed if both are on the title).
3. Earned income credit
4. Earnings of Head of Household: This includes wages, commission and bonuses.
Earnings for those not deemed “head of household” may still be protected under the federal
Consumer Credit Protection Act.
5. Health savings and medical savings accounts
6. Personal property: Debtors may claim up to $1,000 in personal property. As with motor
vehicles, husbands and wives filing jointly may double this amount. (i.e. $2,000 in personal
property may be allowed).
This is not an exhaustive list of all assets that a debtor can keep following bankruptcy. Your
attorney can provide more tailored information. In all cases, however, Florida law allows
relatively robust protections for those filing for bankruptcy.
Contact a Jacksonville Bankruptcy Attorney
If you are considering filing bankruptcy, seek counsel from the experienced attorneys at
Dolaghan Law for the professional guidance you need to navigate the system. Dolaghan
Law has offices in Jacksonville, and Daytona, to serve residents in Northeast Florida and the surrounding counties You can call at 904-354-4935 to schedule a free consultation.