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Financial hardship can happen to anyone. It leaves us in a place where we have to decide whether bankruptcy . is the best option for debt relief. There are assets that we own that then determine what the best option is for us.

The purpose of this article is to provide the bankruptcy exemptions in a readable format from the Florida Statutes Government website. I also would like to provide different options to consider if you have assets that greatly exceed the exemptions. For example, you may qualify for a Chapter 7 bankruptcy, but you have such a large equity position in an automobile over the allowable exemption that a Chapter 13 bankruptcy in Florida or debt settlement may be better options. Thankfully, as you’ll see below, it is rarely a problem that a trustee can pursue you for equity in a home. One of the only ways that a Trustee could possibly go after a person’s home is if the person moved to Florida from another state and they either can’t use Florida’s exemptions as we will discuss below.

Couple things to note about Florida Bankruptcy Exemptions:

  1. In the world of bankruptcy exemptions, there are state and federal bankruptcy exemptions. Florida is a state that allows you to only use the state bankruptcy exemptions.
  2. You must have lived in Florida for at least 24 months before you filed to take advantage of the Florida bankruptcy exemptions. If you haven’t, John R. Bates created an excellent guide to exemption option for nonresident debtors.

Florida has certain statutes and bankruptcy exemptions that you must consider when filing a bankruptcy. If you have an asset that is above the Florida exemption, that asset could be liquidated. Below are some of the most common bankruptcy exemptions for Florida. Let’s get into the numbers. We cover some of the most common example, but we do recommend that you visit the government website to review all of the data.

Florida Bankruptcy Exemption List

  • Homestead Exemption: Infinite as long as the debtor is eligible to use Florida exemptions and has owned the property for more than 1,215 days. If they debtor hasn’t owned the property for more than 1,215 days then only $170,350 is exempt.
    Automobile Exemption: Up to $1,000 per debtor in one vehicle. (e.g If the case is a joint case then a married couple can exempt $2,000 in one vehicle, but they can’t exempt $1,000 each in 2 vehicles).
    Personal Property Exemption: $4,000 If the debtor doesn’t receive the benefit of Florida’s constitutional homestead exemption. This is important because Florida has a statute that gives 100% exemption for vehicles/vessels that qualify for homestead. A debtor can use the statutory homestead and the expanded wildcard exemption.
  • 401(k) Plan: Exempt
  • 403(b) Plan: Exempt
  • IRA: Exempt
  • Alimony: Exempt
  • Annuities: Exempt
  • Disability Income and Benefits: Exempt
  • Health Savings Account: Exempt
  • Social Security Benefits: Exempt
  • Unemployment Compensation and Benefits: Exempt
  • Worker’s compensation: Exempt

We do not cover some of the less common exemptions such as illness benefits, firefighter pensions, retirements involving stock, but we urge you to research those unique Florida bankruptcy exemptions at the Florida Debt Statutes and Exemptions Government website.

Your Options When Above Florida Bankruptcy Exemptions

Florida has some of the more generous bankruptcy exemption laws, but let’s say there’s an example that you own a vehicle outright that is valued at $15,000 and you also qualify for a Chapter 7 bankruptcy. There’s an opportunity to still do the Chapter 7 bankruptcy, but the trustee will most certainly liquidate the vehicle to payoff some of the creditors. You have a couple more prominent options:

Chapter 13 Bankruptcy:

This is consider the wage earner’s chapter of bankruptcy. You would be setup on a 3 or 5 year plan that would be a set monthly rate based on what you can afford. This option is generally more expensive that a Chapter 7 after legal fees, but it is a valid option for many folks who are above the exemptions

Debt Settlement:

Debt Settlement is where a company or you would negotiate a lower amount owed with the creditors directly because of the financial hardship that is preventing you from paying your bills. For example, a debt settlement company would try to negotiate a $10,000 credit bill down to $5,000. This option would still negatively affect your credit and there are fees associated with this option, but it is a valid option for many and can be quicker than a Chapter 13 bankruptcy depending on how aggressive you are with negotiating and paying off the debt.

Debt Management:

Debt Management is where a company would would negotiate a lower interest rate with your creditors because of a financial hardship. For example, a debt management company would try to negotiate a credit card’s interest rate from 22% to 8%. This option is often the most expensive of the debt relief options and can work best for credit cards, but debt management is a valid option for many folks.

Post Author: Ben Tejes

Ben Tejes is a co-founder and CEO of Ascend Finance. Before Ascend, Ben held various executive roles at personal finance companies. Ben specializes in Chapter 13 Bankruptcy, Debt Settlement, Chapter 7 Bankruptcy and debt payoff methods. In his free time, Ben enjoys spending time going on adventures with his wife and three young daughters.

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