Will I Lose All Of My Stuff When I File Bankruptcy?

No! Florida law affords debtors in bankruptcy certain personal property "exemptions". What does that really mean? Your personal stuff is protected from your creditors and the bankruptcy estate up to a certain amount.

Protected Property

Although every case is very different, here are some basic personal property protections you have in bankruptcy. This is by no means an exhaustive list but rather the most commonly used bankruptcy exemptions.

1. Your Home

If you have equity in your home or even own it free and clear there are limitations based on the size, location and value of the property but Florida is one of the few states with a very broad and generous homestead protection.

***Married debtors filing jointly receive the following exemptions for each person

2. Wildcard

If you do not own the property you live in or are surrendering it in your bankruptcy, you have an additional $4000 to apply towards any personal property.

3. General Property

$1000 worth of general personal property

This exemption is generally used for money in bank accounts, household furniture, tools, mowers, and jewelry.

4. Cars

$1000 for equity in a vehicle

Remember if you owe more on a car than it is worth, there is no equity.

5. 401k

The money in your 401k is exempt, 100%.

Options for Unprotected Property

If you have more stuff than a bankruptcy attorney can protect, do you have to give it up? No! If affordable for you, a bankruptcy attorney can work out a payment arrangement with your case trustee to pay the un-exempt value of that property in order to keep it.

If you have questions about whether your stuff is protected if you file an Orlando Bankruptcy, please call a local attorney to discuss your specific situation.