What are exemptions?
Laws that protect your real and personal property in a Florida bankruptcy are called “exemptions” and actually rely on the State of Florida’s own property exemptions rather than federal exemptions. These state exemptions will even protect your property outside of bankruptcy if you decide not to file a bankruptcy case.
That’s because the federal government gave the individual states the right to opt out” from the federal exemption scheme to utilize their own exemptions in bankruptcy. Florida is an “opt-out” state. Many states have “opted out” which means that there can be important differences in the property you are permitted to keep, depending on where you live. This is true, even though all bankruptcies are filed in federal court, and you would think you get the same “brand” of treatment in all the courts — not true. Your mileage will vary depending on which state you physically reside in, and for how long you actually resided there. For our discussions, information is focused on bankruptcies filed in Florida only.
