Florida Bankruptcy Exemption
Florida Bankruptcy Exemptions
Residency & Bankruptcy Exemptions
What are the residency requirements to file for bankruptcy? This is a question many people want to know, and at Nardi & Nardi, P.A. we are able to answer your all questions.
While your residency does not decide whether you can file for bankruptcy or not, what it does determine is where you can file for bankruptcy and which set of property exemptions will apply to your case.
Exempted Properties
When you file a Chapter 7, some of your assets are protected from your creditors (and their champion – the Chapter 7 Trustee. These are protected assets (what you get to keep in Chapter 7) are your “exempt property.” When the current Bankruptcy Code was originally passed, Congress made up a list of the items you can exempt, often referred to as "the Federal List." Congress, however, also gave permission to the individual states to decide whether they preferred their own list of exempt property rather than use the Federal List. The legislatures of 37 states, including Florida, decided not to use the Federal List, but rather to use their own list of exempt property. This means that the exemptions in a bankruptcy case filed in Florida is different from what you can exempt in a bankruptcy case filed in any other state.
Some exemptions in Florida include
- Homestead with some applicable limits
- Additional $4000 of property, if you do not claim homestead
- $1000 Towards equity in a vehicle
- Prepaid College Savings Account
- Annuities
- And many more
Homestead Exemption Law & Residency
One unique exemption under Florida law is the "homestead exemption," which states that you can keep a homestead, up to one-half acre of land inside the city limits with your residence, or up to 160 acres of land if located outside a city. The homestead exemption has become famous because of prominent cases where some individuals moved to Florida to take advantage of this exemption. To prevent such events from happening, Congress has decided to include a two-year residency requirement to all Florida exemptions.
Florida Exemption Law Eligibility
Residency is an important aspect in the Florida exemption law. The rule states that you have to establish a 24-month residency in Florida to become eligible for the exemption law. If you are not able to prove 24 months of residency, the court focuses on the 6-month period of time preceding the 24-month period. This determines which state exemption laws are applicable to your case. In the event that the previous state has its own residency qualification (that is, that state limits its own exemptions to residents of that state (which you no longer are) you could use the Federal List. The Federal List is more generous on some exemptions and less on others. The timing of your bankruptcy filing could be critical in determining which set of exemption laws would apply to you.
Call us at (407) 478-0074
today to speak directly with an experienced Orlando, Florida, lawyer at Nardi & Nardi, P.A., contact us by e-mail
or complete our contact form
if you have a question about Residency & Bankruptcy exemptions.
Free consultations in bankruptcy and personal injury · Accessible from both Orange and Seminole Counties · Located conveniently off of I-4 · Parking available · Credit cards accepted · Servicios del intérprete disponibles