Filing for bankruptcy feels like standing in the middle of a storm. Everything spins. Fear sets in. But knowing what assets are exempt from bankruptcy in Florida can be the calm in that chaos. The state of Florida has some of the strongest exemption laws in the country. These laws can help protect the things that matter most.
The Florida Homestead Exemption
Start with your home. If it’s your primary residence, Florida law lets you keep it. That’s the homestead exemption. There’s no dollar limit, but there are rules. You must have owned the property for at least 1,215 days before filing. And the property must sit on half an acre or less inside a city or up to 160 acres in the country. If you meet these, the bankruptcy court cannot touch your home. Even if you owe credit card debt, medical bills, or personal loans, your home stays yours.
Exempt Personal Property
Your personal belongings matter. Florida lets you keep up to $1,000 in personal property like furniture, clothes, or electronics. If you don’t use the homestead exemption, you can protect up to $4,000 instead. This is called the wildcard exemption. It gives people without a home more breathing room. You can also protect health aids, education savings accounts, and prepaid college plans. These might seem small, but they hold big value when trying to rebuild.
Vehicle Exemption
Cars aren’t just metal and wheels. They take you to work. They help you get groceries. Florida law protects up to $1,000 in equity in a car. If you still owe on the loan and your equity is low, your car is usually safe. If you don’t claim the homestead, that $4,000 wildcard can add to your car exemption. That gives you more protection and less worry.
Wages and Retirement Plans
Wages put food on the table. Florida law protects wages for the head of household. If you provide for a family, most of your paycheck is off-limits to creditors. You need to file an affidavit to claim it, but it works. Retirement accounts are also safe. 401(k)s, IRAs, pensions, and other retirement savings are fully exempt. That means you won’t lose your future while trying to fix the present.
Public Benefits and Insurance
People rely on public benefits to survive. Florida law agrees. Social Security, unemployment, workers’ comp, and veterans’ benefits are all exempt. So is life insurance if the policy was made for your spouse or children. Disability income and health savings accounts are usually protected too. These benefits give people a way to keep going. Bankruptcy doesn’t take that away.
Why Florida Exemptions Matter
Think of bankruptcy like starting a new chapter. The old page turns, but not everything gets erased. These Florida bankruptcy exemptions make that possible. They give you a place to live, a way to drive, and tools to earn a living. Imagine a lighthouse guiding ships in a storm. That’s what these laws do. They guide people out of debt and into safety.
Protect What Matters Most
Florida’s bankruptcy laws are made to protect. But using them right takes experience. Not every case is the same. One wrong move can mean losing something you could have saved. That’s why it helps to talk to someone who knows the rules and cares about getting it right.
Ready to take control of your future? Let’s talk. Call Higginbotham Bankruptcy Law Firm at 904-354-6604 to learn how to protect your home, your wages, and your peace of mind. Get help now before the storm gets stronger.