Florida bankruptcy laws provide protection for those debtors who have more debt then they can handle. By filing bankruptcy, you receive protection from collections actions of your creditors. However, bankruptcy laws are designed to keep individuals from filing bankruptcy who have the assets necessary to pay their debts. Before filing, learn what is and is not protected under Florida bankruptcy laws.

Bankruptcy Exemptions

Florida bankruptcy law allows you to keep certain assets as you file for bankruptcy. These include:

• Unlimited amount for the homestead. Homestead cannot be larger than ½ an acre in a city or 160 acres somewhere else
• Government benefits
• Annuity proceeds
• Property that is part of a business partnership
• Retirement plan proceeds
• Life insurance proceeds
• Payment from crime victim funds or workers’ compensation claims
• Up to $1,000 for personal property
• Doctor-prescribed health aids
• Payments for death benefits
• Cash surrender value of the life insurance policy
• Medical savings accounts deposits
• Hurricane savings account deposits
• Prepaid college tuition deposits
• Federal income tax refund
• Some pensions
• Wages for head of family, up to $500 per week, for up to six months

In addition, those choosing not to take the homestead exemption may take up to $4,000 for any personal property. Debtors may redeem their cars within 45 days of the 341 meeting by purchasing them from their creditors with a single payment for what is owed.

Chapter 7 Bankruptcy Information

Those looking to completely wipe out their debts usually attempt to file Chapter 7 bankruptcy. Even in Chapter 7 cases, not all debts can be eliminated by filing for bankruptcy. Alimony, child support payments, many back taxes, student loans, and payments owed to the government cannot be eliminated under bankruptcy. Other debts can be eliminated with Chapter 7 bankruptcy, provided the debtor passes the means test.

Chapter 13 Bankruptcy Information

Chapter 13 bankruptcy is ideal for those who want to try to keep certain assets, like their cars, or who do not pass the means test. Under Chapter 13 bankruptcy, the court works with the debtor to set up a workable repayment plan, and the debtor is held accountable to the court for sticking with that plan.