EXEMPTIONS IN FLORIDA DURING A CONSUMER BANKRUPTCY
Do you intend to seek protection under the Bankruptcy Code as a consumer? Do you feel like you’re drowning in debt, and you want to know if Chapter 7 bankruptcy would help you start over? Many people in the Orlando region are struggling to make ends meet and are considering bankruptcy as an option. Press The Restart Button.
Many people also believe falsely that upon filing for Chapter 7 bankruptcy, they will lose all of their possessions and property. Not all of a debtor’s property is liquidated even though Chapter 7 bankruptcy is a “liquidation bankruptcy,” meaning that a debtor’s assets are liquidated to repay creditors and allow the debtor to receive a discharge.
There are bankruptcy exemptions on both a federal and Florida state level. Debtors in Chapter 7 bankruptcy in Florida must employ the Florida exemptions, which allow them to keep certain property and certain monetary value even though they filed for bankruptcy.
Provisions Protected from Collection in Florida Bankruptcies
If you are a consumer filing for Chapter 7 bankruptcy in Florida and you meet the residency criteria, you may be able to keep some of your belongings out of the bankruptcy trustee’s hands. The Florida bankruptcy exemptions are intended to help with this situation. Individuals and families in the Orlando area may be able to keep vital possessions, like as the family home, thanks to the wide variety of exemptions available. The following are some of the most often used exclusions by Orlando Chapter 7 bankruptcy filers:
- The homestead exemption in Florida is one of the most generous in the country. If the home is less than half an acre in size within a municipality or 160 acres outside of a municipality, the debtor entering Chapter 7 bankruptcy can exempt the home’s whole value. As a result, if the debt is fully paid off, the debtor can keep the home even if filing for liquidation bankruptcy and exempt the entire equity value.
- You can exclude up to $1,000 in equity in a motor vehicle.
- Apart from real estate, creditors in Florida can exempt up to $1,000 worth of personal property. Personal property can be valuable to the owner, such as their home furnishings, wardrobe, and collections.
If a debtor does not choose to exempt their primary residence, a “wildcard exemption” allows them to exempt up to $4,000.