This page was written, edited, reviewed & approved by Emil J. Fleysher following our comprehensive editorial guidelines. Emil J. Fleysher, the Founding Partner, has 15+ years of legal experience as a bankruptcy attorney. Our last modified date shows when this page was last reviewed.
When you file for bankruptcy, your property doesn’t automatically disappear. Florida law lets you protect certain items through bankruptcy exemptions. These laws help you keep basic things like your home, car, and personal belongings. Knowing what you can keep is a key step in the bankruptcy process.
Fleysher Law Bankruptcy and Debt Attorneys helps you understand your rights. We guide you through filing for bankruptcy, explain which types of property are safe, and protect your bankruptcy estate from unsecured creditors. Florida offers its exemption laws, which are different from federal bankruptcy exemptions.
We will explain what the Florida exemptions list is, including your home, car, retirement accounts, and more. We will also explain how bankruptcy laws apply if you're married, own extra assets, or receive public assistance benefits. Whether you're facing unsecured debts or just exploring your options, knowing what’s exempt property gives you peace of mind.
Bankruptcy exemptions are laws that protect your property during a bankruptcy filing. They allow you to keep certain essential items instead of losing everything to unsecured creditors. These exemptions cover real estate, motor vehicles, personal items, and retirement funds.
When you file, everything you own becomes part of the bankruptcy estate. But if something is exempt property, you can keep it. For example, the homestead exemption protects your home. The motor vehicle exemption protects your car up to a set value. There are also protections for retirement accounts, wages, and public benefits.
Some states let you use either state or federal exemptions. But Florida is different. It follows its own rules, separate from federal bankruptcy exemptions. That’s why you should know what applies in your case.
A bankruptcy attorney can help you choose the right options so you protect yourself as much as possible during the legal process.
Florida is known as an “opt-out” state. This means you cannot use federal bankruptcy exemptions when filing for bankruptcy in Florida. Instead, you must use Florida’s own exemption laws. These rules apply to all bankruptcy filers who meet the state’s residency requirements.
Florida’s list is different from the federal exemptions. But it’s generous in many ways. For example, it offers a very generous homestead exemption, which can protect your full home value in many cases. Florida also has specific rules for personal property, motor vehicles, and public assistance benefits.
Because you cannot choose the federal non-bankruptcy exemptions, you must know what’s allowed under Florida law. If you’re unsure, a skilled bankruptcy attorney can review your property and explain which assets are protected. Choosing the right strategy helps protect your exempt property and avoid surprises in the bankruptcy process.
To use Florida’s bankruptcy exemptions, you must meet specific residency requirements. You need to live in Florida for at least 730 days (two years) before your bankruptcy filing. If you haven’t lived in Florida that long, you may need to use the exemption laws from your previous state.
If you moved recently, the rules get more complex. Courts look at where you lived during the 180 days before the two-year mark. If Florida wasn’t your main home during that time, you might not qualify for Florida’s exempt property rules.
This rule helps prevent people from moving to Florida just to claim its generous homestead exemption or other benefits. The law is strict about applying the right set of bankruptcy laws.
If you're unsure whether you meet the requirements, a bankruptcy attorney can review your timeline and help you file properly to protect your types of property.
Florida offers a detailed list of bankruptcy exemptions that protect many types of property. These laws help you keep what you need while going through the bankruptcy process.
Some of the exemptions available to Florida bankruptcy filers are:
Florida’s homestead exemption is one of the strongest in the country. It protects an unlimited amount of value in your real property or home, as long as the land is no larger than half an acre in a city or 160 acres elsewhere. This is known as the bankruptcy homestead protection.
To qualify, the home must be your main residence. You also need to own it for at least 1,215 days before your bankruptcy filing. If not, the protection may be limited.
This exemption can stop unsecured creditors from forcing the sale of your home, which is why Florida is considered a “debtor-friendly” state. It’s one reason people seek bankruptcy relief here.
A bankruptcy attorney can make sure your home qualifies, especially if it’s in a trust or jointly owned.
Florida allows up to $1,000 of personal property exemption for individual filers. If you don’t use the homestead exemption, this amount increases to $4,000 under the wildcard exemption. Personal property includes things like furniture, appliances, health aids, family heirlooms, or savings account deposits.
You can also exempt medical savings accounts, education savings, and qualified tuition programs. These are treated as essential items under Florida law. Keep in mind, the total value of these items must stay under the exemption limit.
Having clear records of what you own and how much it’s worth can help avoid problems. A bankruptcy attorney can guide you in listing each item and applying the right exemption. Protecting exempt property is a key part of the bankruptcy process.
Florida offers a motor vehicle exemption of up to $1,000 for one vehicle. This applies to the equity in your car, not its full value. If your car is worth more than that, you might lose it unless you use the wildcard exemption (available if you’re not using the homestead exemption).
Motor vehicles are often needed for work or family duties. That’s why this exemption exists. It helps protect your car from being taken by the bankruptcy estate.
If your car is leased or has a loan, the rules may be different. It depends on the car’s value after subtracting what you owe. A bankruptcy attorney can explain how to protect your car or use a repayment plan if needed.
Florida protects some of your unpaid wages from the bankruptcy estate. If you are the head of a family, 100% of your wages are exempt up to $750 per week. If you're not the head of a family, 75% or 30 times the federal minimum wage (whichever is greater) is protected.
This means disposable income from your job may still be safe. The rule ensures people can cover their basic needs while working through the bankruptcy process.
Sometimes, courts will look at your job status and household size to confirm whether you qualify. A bankruptcy attorney can help show you meet the test. You may need to show pay stubs or tax returns to support your claim.
Most retirement accounts are fully exempt under Florida law. This includes pension payments, retirement plan benefits, retirement funds, and tax-exempt retirement accounts like IRAs and 401(k)s.
The law also protects public employee retirement benefits, annuity contract proceeds, and accounts managed by a plan administrator. These assets are usually safe from unsecured creditors as long as they meet legal guidelines.
Some older or non-standard accounts may need extra review. That includes irrevocable trusts, annuity contracts, or plans not under federal tax law. A bankruptcy attorney can help confirm which accounts are protected and guide you in listing them properly.
Protecting retirement savings is one of the key goals of exemption laws.
Florida protects many life insurance policies and annuity contracts during a bankruptcy filing. The cash surrender value of life insurance, also known as the life insurance cash surrender, is often exempt, especially if the beneficiary is a spouse or child.
This includes Death benefits, Annuity contracts, and Annuity contract proceeds. Some policies from a fraternal benefit society may also be protected.
To qualify, the policy must meet certain rules. The owner must not have changed it recently to avoid creditors. Also, policies with large insurance cash surrender value may face more review.
A bankruptcy attorney can help you check if your policy meets Florida’s rules. It’s best to list your life insurance correctly so the court sees it as exempt property.
Florida protects health savings accounts (HSAs) as exempt property. These accounts help cover medical costs and qualify under both state and federal tax exemptions.
HSAs are treated the same as medical savings accounts. This includes health savings, Medical savings, and funds used to pay for health-related items. That protection helps people avoid losing important money meant for care or emergencies.
To claim this exemption, your account must meet IRS rules. It should be used only for approved expenses like doctor visits, medication, or treatment.
A bankruptcy attorney can confirm your HSA meets the guidelines. Protecting these funds can make a big difference if you face illness during the bankruptcy process.
Florida protects disability benefits and Social Security payments in full. This includes illness benefits, monthly public assistance benefits, and long-term disability income.
These benefits are not counted as part of the bankruptcy estate. They are protected even if they are in your bank accounts as long as you keep them separate from other funds.
If the funds are mixed with other income, you may need to trace them back. Courts want proof the money came from social security, public benefits, or disability programs.
A bankruptcy attorney can help with this. You may need bank records or award letters to protect these funds fully. Keeping clear records helps avoid problems during the legal process.
Florida also protects court-ordered alimony and child support. These payments are considered exempt property and cannot be taken to pay unsecured debts during filing bankruptcy.
The goal is to protect dependents. Courts do not allow these funds to be used to pay off creditors. These payments support children and ex-spouses and are seen as necessary for survival.
You should keep alimony and support funds in a separate account if possible. This makes it easier to prove where the money came from.
If you receive alimony or child support, be sure to report it correctly on your bankruptcy forms. A bankruptcy attorney can help ensure it’s listed and protected under Florida exemption laws.
Florida’s bankruptcy exemptions come with extra rules you need to know. These details can affect how much you keep and what counts as exempt property.
Here are some points that will explain the situations that may apply to your case:
If you and your spouse file together, you may double many Florida exemption amounts. This means you can each claim the motor vehicle exemption, personal property exemption, and more.
However, you must both own the item to claim a double exemption. For example, if only one spouse owns a car, only one motor vehicle exemption can apply. The same rule goes for bank accounts, real estate, or other types of property.
Married couples may also qualify for full homestead exemption protection, especially for jointly owned homes. Joint filing can be a smart choice, but it must be done correctly.
A skilled bankruptcy attorney can help review your assets and make sure both spouses get full protection where allowed. This helps you keep more and avoid mistakes in the bankruptcy process.
If you go over the allowed exemption amounts, the extra value may be sold by the trustee. That extra property becomes part of the bankruptcy estate and may be used to pay unsecured creditors.
For example, if your car is worth $5,000 and your motor vehicle exemption only covers $1,000, the extra $4,000 may be at risk. The trustee could sell the car and give you back the exempt portion.
You may also lose excess amounts in savings account deposits, extra personal property, or high-value life insurance cash surrender. This is why it’s important to know the limits and list your property correctly.
A bankruptcy attorney can help you find legal options like a payment plan, repayment plan, or even a separate investigation to argue for more protection.
Can I keep my home if I file for bankruptcy in Florida?
Yes. Florida offers a generous homestead exemption that protects your main home, no matter its value. This only applies if the home fits certain size limits and the bankruptcy filer has lived in Florida long enough to meet the residency requirements.
What happens to my unemployment benefits in bankruptcy?
Your unemployment compensation benefits are fully protected under Florida law. These are considered public assistance benefits and are not part of the bankruptcy estate as long as you list them correctly in your paperwork.
Are life insurance benefits from a fraternal organization protected?
Yes. Florida exempts fraternal benefit society benefits, including life insurance or annuity contracts issued by such groups. This protection helps ensure you or your family keeps these funds during and after the bankruptcy process.
What if I’m a victim of a crime and receive compensation?
Payments to crime victims are generally protected in bankruptcy. This includes funds from victim aid programs or court-ordered restitution. These amounts do not count as assets available to unsecured creditors.
Should I hire a bankruptcy lawyer?
Yes. Experienced bankruptcy lawyers help you protect your property, avoid errors, and follow the rules. They know how to apply exemption laws and make sure your case is filed correctly. Working with a bankruptcy attorney gives you peace of mind during a stressful time.
If you're thinking about filing for bankruptcy, knowing what you can keep is key. Fleysher Law Bankruptcy and Debt Attorneys helps protect your home, your car, your savings, and your future. Our team explains Florida’s exemption laws and how they apply to your unique situation.
Whether you're facing unsecured debts, job loss, or medical bills, we’ll guide you through the entire bankruptcy process. We’ll make sure your retirement accounts, public benefits, bank accounts, and personal property are handled correctly.
Our bankruptcy lawyers will answer your questions, review your assets, and help you make informed choices. We’ll also help if you're unsure about federal exemptions, payment plans, or what qualifies as exempt property.
You don’t have to go through this alone. Contact us today for a free case consultation and let a trusted bankruptcy attorney help you take control of your financial future.
Emil specializes in consumer bankruptcy, debt settlement, and mortgage modification, offering a holistic approach to solving mortgage and debt problems. Emil listens to clients, understands their circumstances and goals, and helps them make the right choices by presenting all options and contingencies.
He is dedicated to helping South Floridians regain their financial freedom from overwhelming debt caused by high interest credit cards, bad mortgage loans, and uninsured medical expenses.
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