subject: Understanding Chapter 7 Bankruptcy Discharge [print this page] 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. In order to file this type of bankruptcy you must give up all of your property and sell it to pay off your debt. When people undergo this type of bankruptcy they are liquidating their assets. In the state of Florida, certain bankruptcy exemptions laws exist that keep creditors from taking certain types of property during bankruptcy. Those individuals who are seriously contemplating bankruptcy should find out about these exemption laws. There are federal and state laws that provide bankruptcy candidates with helpful 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. Individuals can rest assure that their home is protected due to the Florida Homestead Exemption. 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.
If your property is located in the city it cannot be bigger than 1/2 acre. Property that is located in the country or in a rural area cannot be bigger than 160 acres, Once these conditions are met you, your spouse or even your child can save the home under the Homestead Exemption when filing bankruptcy. Even people who have a million dollar home are able to save the property during bankruptcy proceedings. This exemption works regardless of the amount of money that is involved. It is very refreshing to know that when you file bankruptcy in Florida your pension is protected.
Creditors are not allowed to seize any retirement checks, IRA's or other governmental income that you may receive. Creditors cannot liquidate your pensions because they are exempt from your bankruptcy. Creditors do not have access to your workers compensation, alimony or child support during bankruptcy proceedings. Creditors cannot touch these types of accounts where you have put aside money for your children's college. Your college accounts are safe during your bankruptcy process. When you file bankruptcy money that is put into a Medical Savings Account is safe according to the Florida exemption laws. All Florida residents should be aware of their bankruptcy options.
