Look, bankruptcy isn’t fun. But Florida has your back – they’ve set up some pretty sweet protections for your stuff. Let me break it down in plain English, but I’ll keep it official where it matters.
Your home
The famous Florida homestead protection is no joke. Keep your house, no matter what it’s worth. But there are rules:
- City folks: Your lot can’t be bigger than half an acre
- Country living: You get up to 160 acres
- You need to have lived there for 1,215 days before filing (that’s about 3 years and 4 months)
Personal stuff
Basic protection: $1,000 for your belongings
Car equity: $1,000
Pro tip: Don’t need the homestead protection? You can grab an extra $4,000 for personal items instead
Money matters
Whereas the State of Florida recognizes the necessity of protecting certain income streams, the following shall be exempt from creditor claims:
- Head of household wages (if you’re supporting dependents)
- All retirement accounts (401(k)s, IRAs, the whole nine yards)
- Social Security checks
- Unemployment money
- Veterans’ benefits
- Child support and alimony payments (these are hands-off)
Insurance & other stuff
- Life insurance cash value (if it’s for your family)
- Disability payments
- Annuity money (terms and conditions apply)
For the working folks
You can keep up to $1,000 in work tools and equipment. This means your mechanic’s tools, your hairdressing scissors – whatever you need to make a living.
Legal stuff you should know
Be it known that:
- Federal exemptions? Nope. Florida’s rules only.
- Married and filing together? Some of these numbers might double.
Bottom line: Get yourself a good bankruptcy lawyer. This stuff gets complicated fast, and you want to keep everything you legally can.
