Legal Advice

Florida Bankruptcy Exemptions

When people in Florida file for bankruptcy, they actually form two groups; those who do so to pay off unsecured debts and those who do so to clean their credit file. Florida is unique in that its bankruptcy laws are much more restrictive than those found elsewhere in the US. It is important to understand the different types of bankruptcy when considering what the process entails or what is required of you. A good bankruptcy lawyer can help you make the right decisions based on your individual circumstances. Because the laws vary so much within Florida, consulting with a professional bankruptcy lawyer before filing can ensure that you get the best advice for your specific situation. You can learn more about your options for filing bankruptcy by consulting a bankruptcy lawyer.

The Florida Bankruptcy Law allows a debtor to declare themselves insolvent. Insolvency is described as having no resources to pay debts that could not be repaid and requires the immediate liquidation of assets. The trustee issues the bankruptcy proceedings and the debtor are then represented by a bankruptcy lawyer. At the first scheduled meeting with the trustee, the debtor and their attorney are given an opportunity to make amendments to the plan provided by the trustee. Once these modifications are made, the meeting is continued by another meeting day. This meeting day is called the 341 meetings.

The meaning of bankruptcy to most people is that the property of the individual is protected in case they file for bankruptcy protection. However, the Florida Bankruptcy Law allows the trustee to take certain measures in order to protect the debtor’s interest in the property, including requiring the debtor to sell or transfer all personal property owned during the time of the bankruptcy and requiring that certain personal property is placed in escrow. This means testing of equity, assignment of mortgage, payment of taxes, payment of interest, and sale of any remaining property. The trustee will then determine if the person is able to meet their financial obligations and discharge them from bankruptcy.

There are some types of Florida bankruptcy that can be filed by anyone. The first type of bankruptcy filing is voluntary bankruptcy. Voluntary bankruptcy means that filing bankruptcy is being done because of financial difficulties rather than because of the inability to pay debts. A debtor can file for this type of bankruptcy if they are jobless or have recently filed divorce papers. Florida requires that the filer or debtor be residing in the state in order to file for this type of bankruptcy.

Another type of bankruptcy in the state of Florida is non-recourse bankruptcy. Non-recourse bankruptcy means that the property being offered for protection is exempted from any type of creditors claim during the entire period of the bankruptcy. This type of bankruptcy does not allow the creditors to collect anything more than what the loan amount was for. This means that the debtor can eliminate their debt immediately after filing and without having to worry about lawsuits from other creditors.

One other type of bankruptcy in the state of Florida is the homestead exemption bankruptcy. A homestead exemption bankruptcy allows debtors to legally eliminate their debt based on the amount of equity they currently own in their home. In order to qualify for this exemption, the debtor must own a substantial amount of equity in the home. The value of the equity may not be the same as the home’s current fair market value. The homestead exemption bankruptcy is considered a privilege, not a right.

Florida bankruptcy exemptions provide many benefits to people who are filing for bankruptcy. Anyone can file for bankruptcy regardless of their credit, financial status, or assets. Anyone who has filed bankruptcy in the past is not excluded. Also, the court system in the state of Florida allows the debtor to file the bankruptcy petition with the assistance of an attorney. There are no real-time limits on when a petition must be filed. This means that people can file their petition at any point in time that they choose.

These two types of Florida bankruptcy exemptions, federal bankruptcy exemptions, and homestead exemption bankruptcy cases have provided benefits to many people in the state of Florida. Those who have experienced loss or damage because of their debts can use one of these exemptions to get out from under financial stress. Property owners who have encountered unreasonable seizure or repossession can also use these Florida bankruptcy exemptions to protect their legal rights. The debtor will not be able to prevent repossession, but if they can’t afford to pay the full amount then the court will allow them to sell the repossessed property for a smaller amount.

This post was written by Trey Wright, one of the best bankruptcy lawyers in Tallahassee FL! Trey is one of the founding partners of Bruner Wright, P.A. Attorneys at Law, which specializes in areas related to bankruptcy law, estate planning, and business litigation.

The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only. Information on this website may not constitute the most up-to-date legal or other information.This website contains links to other third-party websites.  Such links are only for the convenience of the reader, user or browser; the ABA and its members do not recommend or endorse the contents of the third-party sites.