Federal courts have permitted the IRS to levy upon a Florida taxpayer’s entireties account to collect taxes owed by one spouse filing an individual tax return. The entireties exemption does not protect the married taxpayer from the IRS. Does it follow that a joint tax refund from the IRS is also not protected entireties property in bankruptcy? Continue reading
Category Archives: Florida Bankruptcy Exemptions
Entireties Assets Exempt To Extent Greater Than Unsecured Bankruptcy Debt
Florida common law is that entireties property is exempt from all creditors of either spouse, but it is not exempt from joint creditors. Tenants by entireties property in bankruptcy proceedings has been the subjection of judicial debate over the years when one spouse files bankruptcy, and where the debtor spouse has both individual debts and joint debts with their non-filing spouse. Continue reading
Exempt Disability Income Loses Benefits In Bankruptcy
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Disability insurance proceeds, from either private insurance or social security, cannot be garnished by a judgment creditor in Florida, and courts will protect the same proceeds after they are deposited in a debtor’s bank account. That’s the law in state court collections, but treatment of disability income is somewhat different in bankruptcy.
Homestead Exemption Upheld Despite $184,000 Investment Within 10 Years Of Bankruptcy
The 2005 bankruptcy law contains a provision which intends to stop debtors from converting non-exempt funds in to homestead properties otherwise exempt under state law. Continue reading
Surrender Of Property To Mortgage Lender Does Not Forfeit Homestead Exemption
Your homestead property is exempt as long as you intend to maintain the property as your permanent residence. When a homestead owner files Chapter 7 bankruptcy he must declare his future intention regarding his homestead property and mortgage. Continue reading
Homestead Exemption For Foreign Debtors Living In Florida Properties
Florida’s homestead exemption seems simple, but in some respects the exemption involves complicated legal issues. Continue reading
Bankruptcy Debtors Eligible For Wildcard Exemption If They Keep Homestead And Try To Modify Mortgage
Two married Florida debtors own an upside down homestead property. They are seeking mortgage modification in the hopes of holding on to their home. Continue reading
Improper Ownership Of Life Insurance Policy Is Windfall For Creditors.
I saw another example of how sloppy financial and estate planning causes problems in bankruptcy. Continue reading
Jacksonville Bankruptcy Court To Trustee: “Hands Off The Debtor’s Homestead”
I wrote a blog post a couple weeks ago about Chapter 7 trustees who try to force debtors to pay money or give up title to their upside-down homestead properties which the debtors do not claim as exempt. The debtors are not using the homestead exemption to protect their homes without equity because they want to qualify for the $4,000 wildcard exemption available to debtors who do not benefit from the Florida homestead exemption. Continue reading
Can Joint Bankruptcy Filing Claim Entireties Exemption When Spouses Have Separate Debts?
I interviewed a married couple wanted to file joint Chapter 7 bankruptcy in Orlando, Florida.