The federal court system assists those who are filling bankruptcy by helping them to get rid of their debt. A business or an individual can file bankruptcy and attempt to get rid of all their debt by going through the federal court system. Those who file this type of bankruptcy give up any property that they own and it is sold in order to pay off their debts. This process is called a liquidation of assets. Certain Florida exemptions keep creditors from being able to seize property during the bankruptcy process. Anyone who is contemplating filing for bankruptcy should be aware of these exemption laws. The bankruptcy process is never easy but there are helpful federal and Florida state laws that provide exemptions.
Each exemption explains in great detail what is not included in bankruptcy. One of the first questions that people ask is what is going to happen to my family and me and my home is taken. The Florida Homestead Exemption makes sure that your home is protected from creditors. You can rest easier knowing that even when you file bankruptcy, according to Florida law your home is protected and cannot be seized by creditors. There are a few additional conditions that go along with the exemption.
The property cannot be on more than 1/2 acre of land if located in the city. Â Once the conditions are met you can automatically claim your home under the Homestead Exemption and make sure it is protected during bankruptcy. This is the reason why people still get a chance to keep their million dollar homes even after filing bankruptcy. Regardless of the amount of money you owe or the value of your home you are allowed to keep possession. Your pension or retirement is protected from bankruptcy proceedings in Florida.
Company retirement accounts, disability checks and any other government income are all protected from creditors. People can breathe a little easier knowing that the pension they worked so hard for will not be swooped up by creditors. In addition workers compensation, alimony, child support and unemployment are a few other examples of benefits that are exempt from bankruptcy and off limits to creditors. Prepaid College Funds and other types of prepaid savings account are protected during bankruptcy. Any type of trust or special fund that is accumulating for your child’s college is safe during bankruptcy. Florida exemption laws make sure that your Medical Savings Accounts are safe from your creditors. It is also important to note that when filing bankruptcy, any Medical Savings Account that you have are safe from your creditors. As a Florida resident it is very important to be aware of all of your available bankruptcy choices.
A bankruptcy lawyer or even an online website are great places to get started when trying to find out more about bankruptcy. The exemptions are designed to help Florida residents so each and every resident of the state is eligible to take full advantage of them. Tampa Bankruptcy Attorney, Darrin T. Mish has been helping debtors with debt problems for over a decade. At the Tampa Bay Bankruptcy Center we really care! To get more information on your bankruptcy options visit his website at: http://tampabankruptcy.pro.