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Florida Increases Personal Property Exemption
The Florida legislature passed a law increasing the personal property exemption in bankruptcy. Under Florida Statute 222.25 as written Florida debtors can claim a $1,000 exemption for miscellaneous personal property. Most bankruptcy debtors have applied this exemption to furniture, cloths, cash and other personal property. Effective July 1, 2007, the exemption is increased to $4,000 for those debtors not claiming or benefitting from a homestead exemption. Many Florida debtors not exempting a homestead can use the increased general property exemption to protect equity in automobiles not otherwise protected by the $1,000 exemption specifically allowed for automobiles.
People who could benefit from the increased personal property exemption may want to defer bankruptcy filing until the July 1 effective date. The wording of the statute appears to leave open issues for further court interpretation, such as the meaning of benefits of homestead exemption. For instance, I wonder if a debtor with a homestead owned jointly with a non-debtor spouse qualifies for the $4,000 property exemption if he exempts the residence as tenants by entireties property instead of claiming the exemption under homestead protection. As is the case in all new statutes, judicial clarification will ensue.
posted by Jonathan Alper, asset protection and bankruptcy attorney, Orlando, Florida
May 9, 2007 in Bankruptcy News | Permalink
Comments
thank you for this website. I have lived in my
florida home for more than 40 months. A bk atty said that if I file bk 7 the court will look back 10 years for any transfers of assets into my home and may disallow my bankruptcy.. Can this be right?
Posted by: leaper | Nov 8, 2007 11:34:55 AM
I'm still a little confused about the judgment being valid for 20 years. If it has to be renewed in the 7th year can it still be enforced if the renewal was not applied for?
Posted by: Bill | Jun 5, 2007 9:20:24 AM
Dear Sir:
Your site is very helpful and I wish to thank you for the information provided.
I understand the residential homestead protection and the protection offered both the assets in an annuity and the disbursements from an annuity. My question is this; If there has been a judgment against someone and that person is receiving income from an annuity, presumably they spend that annuity income to live. That is, on groceries, cloths, medical expenses, buying furniture, autos, etc. Even though the disbursement from the annuity is protected, are items purchased for living from those proceeds protected? If not, what good are having the disbursements from the annuity protected if once you buy something with those proceeds, the item you buy can be taken?
Thanks,
Curt
Posted by: Curt Bogle | Jun 3, 2007 9:53:47 PM
I would like to second the latest comment; great job in updating this blog with terrific data and thoughtful and careful analysis! Thank you.
Posted by: Justin | May 31, 2007 10:32:18 AM
Forgive me for correcting you, but... Florida Statute 222.25 does not provide a $1,000 exemption for miscellaneous personal property. Florida Statute 222.25 provides for the $1,000 autombile exemption. The miscellaneous personal property exemption is actually provided for right in the Florida Constitution, Article 4 section 10. ;)
tm
Posted by: Tony McDonald | May 30, 2007 4:49:41 PM
Jonathan,
I wanted to take a moment to thank you for continuing to update this blog and all of your efforts. Your site comes up again and again in my searches to learn more about bankruptcy. I (and many others, I am sure) truly appreciate your thoughtful and thorough analyses.
Posted by: ReaderInTampa | May 29, 2007 4:30:24 PM
