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BANKRUPTCY PROPERTY EXEMPTIONS
Chapter 7 bankruptcy is usually best suited for
an individual
who has modest income, few assets, and comparatively high
debts. It is typically used to provide relief where a person's
financial problems are such that even a restructuring of their
debt will not be manageable. It typically allows you to discharge
most of your debts.
The Bankruptcy Code allows you when filing for bankruptcy
to keep certain assets. That property is your exempt property.
The Bankruptcy Trustee cannot take your exempt property and you
may keep all of your exempt property. The Trustee may take your
non-exempt property and sell it for the benefit of your unsecured
creditors.
A person filing bankruptcy in Florida today is eligible
for the property exemptions provided by Florida's Constitution.
Florida has rather liberal bankruptcy exemptions that are favorable
to a debtor filing for bankruptcy in Florida. The homestead exemption
is virtually unlimited and allows a debtor to preserve their homestead
with only a limitation of the exemption being limited to $125,000
if the property was acquired within the previous 1215 day (3 years,
4 months).
Additional exemptions include personal property
(up to certain limits), pension plans, public benefits, alimony
and child support needed for support, insurance benefits (disability,
illness or death).
It is important to be aware, however, that bankruptcy
does not discharge child support, student loans, drunk driving
debts, and certain federal taxes.
The main purpose for the exemptions is to protect
you and your family and help you maintain a normal standard of
living during difficult times. The objective of bankruptcy is
for you to have a fresh start through the discharge of debts in
a bankruptcy proceeding.
If you would like additional information regarding
bankruptcy, take the time to contact us to arrange for a free
initial consultation to discuss your legal options.
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