Legal Question in Bankruptcy in Florida

Re: Annuties

The bankruptcy court usually either requires surrender of an asset or leaves it be, a lien is not generally their preferred recourse. Whether an annuity is subject to administration by the bankruptcy court (i.e. is non-exempt) depends on the exemption laws applied. In Florida, where I practice, the federal exemptions are not available; however, Florida Statute 222.14 applies. This statute provides that "[t]he cash surrender values of life insurance policies issued upon the lives of citizens or residents of the state and the proceeds of annuity contracts issued to citizens or residents of the state, upon whatever form, shall not in any case be liable to attachment, garnishment or legal process in favor of any creditor of the person whose life is so insured or of any creditor of the person who is the beneficiary of such annuity contract, unless the insurance policy or annuity contract was effected for the benefit of such creditor." So under Florida law, annuities are generally exempt. But, you should always check with a practicing attorney in your state as exemption laws differ from state to state.