When considering bankruptcy, many individuals want to first know what exactly is exempt and what they stand to lose. While many people that file bankruptcy are struggling with overwhelming debt, some of them still manage to hold on to certain assets like annuities, and want to be able to keep them after bankruptcy. For these individuals, knowing Florida bankruptcy law and having a trusted attorney by their side could make all the difference.
The state of Florida does not allow filers to use the federal exemptions list, and under Florida bankruptcy exemptions, annuities are listed as being exempt in certain cases and not in others. So, what’s the difference? Well, it all hinges on where the funds that produced the annuity payments came from. Under Florida bankruptcy exemption law, annuities, where proceeds came from something like a lawsuit or personal injury settlement, are exempt for the full amount. However, annuities, where the proceeds came from lottery winnings, are not exempt, and their cash surrender value must be handed over.
While this is the case in Florida, some states don’t have it as lucky. Depending on where you live, even wrongful death or personal injury settlements are subject to seizure. It is important to keep in mind that these exemptions are type specific, and although this may be the case for Chapter 7 bankruptcy, other exemptions and limitations may apply for Chapter 13.
If faced with making a decision on whether or not to file bankruptcy, speaking to a trusted attorney can help. With their knowledge of Florida bankruptcy law, you can stay informed of your rights and possibly hold on to your valuable property.