Legal Question in Bankruptcy in Florida

Re: bankruptcy

Exemption laws are the same in all consumer cases regardless of chapter filed. Under Florida law, Florida Statute 222 details exemptions allowed. Florida has opted out of the Federal Exemptions, so only F.S. 222 is available to Florida filers. (Sorry, the exemption statute is too long to post here in its entirety)

What changes from chapter to chapter is the effect of these exemptions. In a chapter 7 liquidation, the exemptions determine what is exempt from liquidation by the Trustee. In Chapter 13, the exemptions will form the basis for a floor to your Chapter 13 plan. Under the Code, your plan must pay your creditors over the life of the plan more than they would receive if the estate was liquidated under Chapter 7. This is one of several criteria for a chapter 13 plan.

This is not to say that the Trustee will not object to the debtor retaining property that is not necessary for the debtor's fresh start. For example, while a debtor may claim an exemption for an RV that the debtor has equity in, but carries also still paying a loan, the Chapter 13 Trustee will most likely object to the retention of the RV, even though the equity was claimed as exempt.

For a quick way to get to Florida's exemption statute, go to www.LaBellaLaw.com and click on Tools and then Florida Statutes.