Chapter 7 Personal Bankruptcy in Miami: Exempt Property

When a person files for chapter 7 bankruptcy relief in Miami, Florida, he is allowed to exempt certain property from his bankruptcy estate. Exempt property generally means property that a person is allowed to keep free from liquidation by the chapter 7 bankruptcy trustee for distribution to creditors.

If a person has lived and been domiciled for a sufficient period of time in Miami, Florida. the person is allow is claim the exemptions provided for under Florida and federal non-bankruptcy law. Florida exemptions include the homestead exemption provided by Article X Section 4 of the Florida Constitution. The homestead exemption is limited in size but not in value unless one of the new limitions on homestead value applies. Personal property is exempt to the extent of $1,000.00 and a further $4,000.00 in cases where a person does not have a homestead. A vehicle is exempt to the extent of $1,000.00 in value. Certain retirement plans and benefits such as IRAs and 401(k) plans are also generally exempt. Other exemptions include social security benefits and worker's compensation benefits.

A chapter 7 debtor claims his exemptions on schedule C of his bankruptcy schedules. If the chapter 7 bankruptcy trustee or other party does not object to the claim of exemptions, they are deemed allowed.