Chapter 7 bankruptcy is sometimes called “liquidation bankruptcy.” Many people take this to mean that the person who files bankruptcy will lose everything they own. This is not the case. In fact, Chapter 7 Bankruptcy can help you make sure you don’t lose everything you own. That’s why there are Florida Bankruptcy Laws that are designed to help and protect you.
Bankruptcy exemptions protect many assets from creditors. An “exemption” means the bankruptcy trustee cannot take that asset and sell it pay creditors. As the result of bankruptcy exemptions, most people who file bankruptcy don’t lose anything but their debts.
What Assets can I keep in Chapter 7 Bankruptcy?
When you file bankruptcy in Florida, you can keep many of your personal assets through bankruptcy exemptions, including:
- Unlimited equity in your homestead (not exceeding half an acre in a city or 160 acres in the country)
- Household belongings valued up to $1,000 (you can keep up to $4,000 in household property if you don’t use the homestead exemption)
- Pension plans
- 401(k) and IRA savings up to $1,171,650
- Certain other savings accounts, including those for health, education, and hurricanes
- A car or truck that is not worth more than $1,000
- Wages paid to you in the past six months, up to certain limits
- Alimony and child support payments from your ex
This list does not include all assets that are protected by Florida’s bankruptcy exemptions. To find out if your assets would be protected, contact Marrero, Serrano, Farah Law LP for a free initial visit.
If you have assets you would lose by filing Chapter 7 bankruptcy (such as rental property), you may be able to protect those assets by filing Chapter 13 bankruptcy. Visit our Bankruptcy Attorney Miami Law Firm today to get back on track with your financial path.