Florida Bankruptcy Exemptions
"Exemptions" are the categories of property the law lets you keep when you file bankruptcy. Florida is one of the most debtor-friendly states in the country, particularly for protecting a primary residence. Florida has opted out of the federal bankruptcy exemptions, so Florida residents who have lived in Florida for the required period use Florida state-law exemptions in their bankruptcy cases.
Residency Requirement
To use Florida exemptions, you must have lived in Florida for the 730 days (two years) immediately preceding the filing. If you have not, you use the exemptions of the state where you lived for the greater part of the 180-day period before the two-year window. The federal homestead-acreage cap (currently $189,050 for property acquired within 1,215 days of filing) can also apply to recent transplants.
The Florida Homestead Exemption
Florida's homestead exemption, in Article X, Section 4 of the Florida Constitution, protects unlimited equity in the debtor's primary residence, subject to acreage limits: one-half acre within a municipality or 160 acres outside a municipality. There is no dollar cap. For Miami homeowners with substantial equity in their homes, this is by far the most valuable exemption. See our dedicated page on the Florida homestead exemption for details.
Personal Property Exemption (Up to $1,000)
Section 222.25(1), Florida Statutes, exempts personal property up to $1,000 in value. For a married couple filing jointly, each spouse is entitled to the exemption, totaling $2,000.
Additional $4,000 Personal Property Exemption (Wildcard)
Section 222.25(4), Florida Statutes, provides an additional $4,000 personal property exemption for debtors who do not claim or receive the benefit of the Florida homestead exemption. For renters and underwater homeowners who surrender their houses, the $4,000 wildcard substantially expands the personal-property protection. Married couples filing jointly receive $8,000.
Motor Vehicle Exemption ($1,000 Per Debtor)
Section 222.25(1), Florida Statutes, includes an exemption of up to $1,000 of equity in a motor vehicle. The federal Fair Market Value of the car minus any loan balance equals the equity. For most subprime auto loans, the equity is zero or negative, meaning no exemption is needed to keep the car. For paid-off cars and cars near the end of a loan, the $1,000 cap matters.
Retirement Account Exemption
Section 222.21, Florida Statutes, exempts in full:
- ERISA-qualified pension plans (401(k), 403(b), pension plans, profit-sharing plans)
- IRAs and Roth IRAs (the federal Bankruptcy Code also caps the IRA exemption at approximately $1.5 million, indexed)
- SEP-IRAs and SIMPLE IRAs
- Public employee retirement accounts (FRS)
- Most non-ERISA tax-favored retirement accounts
This exemption protects the vast majority of retirement assets without dollar limit (subject to the federal IRA cap).
Wages of Head of Family
Section 222.11, Florida Statutes, exempts the disposable wages of a head of family in full, up to $750 per week, and entirely (regardless of amount) if the wages have been deposited in an identifiable bank account within the prior six months. A "head of family" provides more than half the support of a child or other dependent. See our wage garnishment page.
Other Florida Exemptions
- Life insurance proceeds and cash surrender values – Section 222.13 and 222.14, Florida Statutes
- Annuity contracts – Section 222.14, Florida Statutes (fully exempt for resident debtors)
- Disability income benefits – Section 222.18, Florida Statutes
- Prepaid medical savings accounts, college tuition prepayment plans, and hurricane savings – Sections 222.22, 222.222
- Health aids prescribed by a doctor
- Tax-credit qualified Section 529 plans with specific timing restrictions
- Unpaid earnings, alimony, child support, and Social Security benefits
- Workers' compensation, unemployment compensation, and crime-victim compensation
- Federal earned-income tax credit (EITC) portion of a tax refund
- Tenancy-by-the-entireties property held jointly between spouses is exempt from the claims of either spouse's individual creditors but not from joint creditors
The Florida Wildcard, Restated
Many Miami filers benefit substantially from the combined personal-property exemption: $1,000 base plus $4,000 wildcard, doubled for joint filers, equals $10,000 per couple in personal property protection – if no homestead is claimed. This is often the deciding factor in whether to surrender or keep a modestly-equity house.
Tenancy by the Entireties
Florida recognizes tenancy by the entireties, a form of joint ownership available only to married couples. Property held as TBE is shielded from the claims of either spouse's individual creditors. In a bankruptcy case filed by one spouse alone, TBE property may receive substantial protection from the filing spouse's individual unsecured creditors (subject to limitations). This is a strategic factor that often shapes whether one or both spouses should file.
Schedule a Consultation
To discuss which exemptions apply in your case and confirm that all of your property is protected, call 786-522-1411 or email [email protected].
About the Author
Albert Goodwin Esq. is a licensed Florida attorney whose practice focuses on bankruptcy, debt relief and foreclosure defense in Miami and across South Florida. He represents consumers and small businesses in Chapter 7, Chapter 13 and Chapter 11 cases in the U.S. Bankruptcy Court for the Southern District of Florida. He can be reached at 786-522-1411 or [email protected].
