Legal Question in Credit and Debt Law in Florida

Re: Retirement Pension Survivor benefits

Generally speaking, most foreclosure actions do not focus as much on the personal liability of the Note, but rather on the property. That is to say that most lenders will be satisfied with just having the home sold at auction.

However, while this was the general rule of thumb for foreclosures for the longest time, with the current market conditions, our office is seeing more and more lenders seeking personal judgments against the borrowers for the deficiency (amount due less auction sale price). Some lenders are pursuing and others are just forgiving that debt. While the concept of a deficiency is certainly not new, it was traditionally unheard of in real estate (you usually saw it with cars). But I digress...

The answer to your question is that under Florida law, retirement pensions from qualified retirement plans are exempt from creditors' claims. Florida Statute 222.21 addresses the exemption of pensions and other qualified retirement plan payments. Needless to say there are many caveats, specifications, and limitations to the exemption, but generally speaking most retirement benefits (as most people would understand them) are exempt.

We will be having more information about garnishments and exemptions added to our website on Friday if you would like to check it out. Go to www. LaBellaLaw.com.