Judgments and Bankruptcy: What are the State Exemptions for Florida?
Florida is known for the best home protection in the country: no one (well, almost no one) can take your primary home, no matter what it is worth. Creditors can take you to court, sue you, and win a judgment, but they can’t take your home, even if it’s worth ten million dollars. There are a couple of exceptions, including your mortgage holder, but that’s just reasonable and expected: if that wasn’t the case, you could just not pay your mortgage, but keep your home. The home protection law is why OJ Simpson moved here, and after reading this, you’ll probably want to move here too. Warning: while the exemptions are all-encompassing for judgments, they change if you file for bankruptcy.
What Creditors Can’t Take From You After They Win a Judgment
- Your primary home: No monetary limitations. You can keep a house on ½ acre (urban) or 160 acres (rural). This is automatic: you do not need to file anything with the court. Note that unlimited protection is only true for judgments: under bankruptcy, there are limitations and exceptions (including the fact that bankruptcy home protection is available up to $137,000 unless you occupied your homestead(s) for a continuous 40-month period).
- Salary or Wages: these are exempt from creditor garnishment for the head of household.
- Life Insurance Policy/Annuities: Cash value is protected (death benefits are not protected). While private annuities are also protected from creditors, with some limitations (the law is a little complex in this area, you should consult with an attorney if this applies to you).
- Pension and Profit Sharing Plans, IRAs: Retirement money is protected from creditors as well, as long as it is in a qualified retirement or profit sharing plan. Personal IRAs are exempt from creditor collection agency judgments, but inherited IRAs may not be, according to a recent court ruling.
- Disability Income: benefits from any disability insurance policy are exempt from creditors.
- Car: up to $1,000 of equity in a car is protected.
- Prepaid College Plans: if a credit collections agency sues you, your entire prepaid college fund is protected.
- Other Exemptions: prescription health aids, hurricane savings accounts, medical savings accounts, and unemployment benefits are exempt.
- Bank accounts: a bank account held in trust for a minor child is exempt, but your own bank account is not (in other words, a credit collections agency can raid your bank account, but not your child’s).
Related posts:
- Bankruptcy and Judgments: What are the State Exemptions for Rhode Island?
- Judgments: What are the State Exemptions for West Virginia?
- Bankruptcy and Judgments: What are the State Exemptions for Wyoming?
- Bankruptcy and Judgments: What are the State Exemptions for South Dakota?
- Bankruptcy and Judgments: What are the State Exemptions for Washington?
Tags: bankruptcy, creditors, florida, judgment
