Exemptions determine what property you get to keep when you file bankruptcy. Understanding them is critical -- they can mean the difference between keeping and losing your home, car, and savings.
Bankruptcy exemptions are laws that protect certain property from being taken to pay your creditors. In Chapter 7, non-exempt property can be sold by the trustee. In Chapter 13, the value of non-exempt property affects how much you must pay through your plan.
Florida requires you to use state exemptions -- you cannot choose the federal exemption system.
Protects Unlimited value (up to half-acre in municipality / 160 acres outside) of equity in your primary residence. Equity is your home's current market value minus what you owe on the mortgage.
Fla. Const. Art. X, Sec. 4
Protects $1,000 of equity in your motor vehicle. If you owe more than the car is worth (you are "underwater"), there is no equity to protect and the exemption is not needed.
Fla. Stat. 222.25(1)
| Property | Florida Exemption | Statute |
|---|---|---|
| Homestead | Unlimited value (half-acre in city / 160 acres rural) | Fla. Const. Art. X, Sec. 4 |
| Vehicle | $1,000 | Fla. Stat. 222.25(1) |
| Personal property | $1,000 | Fla. Stat. 222.25(2) |
| Wildcard | $4,000 (if no homestead claimed) | Fla. Stat. 222.25(4) |
| Tools of trade | $750 | N/A |
| Retirement accounts (IRA, 401k, pension) | Unlimited | Fla. Stat. 222.21 |
| Social Security benefits | Unlimited | 42 U.S.C. 407 |
| Wages (head of family) | Unlimited | Fla. Stat. 222.11 |
| Life insurance (cash value) | Unlimited | Fla. Stat. 222.14 |
| Health aids | Unlimited | Fla. Stat. 222.25(2) |
Florida's homestead exemption protects Unlimited value (up to half-acre in municipality / 160 acres outside) of equity in your primary residence. Equity is the difference between your home's value and what you owe on the mortgage.
Florida's motor vehicle exemption is $1,000. If your car equity is within the limit, you can keep it in Chapter 7. In Chapter 13, you can keep your car and catch up on payments through your plan.
Yes. Retirement accounts including IRAs, 401(k)s, and pensions are fully exempt in Florida. Social Security benefits are also fully exempt under federal law.
Florida protects $1,000 in personal property. Tools of trade up to $750. Health aids and Social Security benefits are fully exempt. See the complete table above.