Florida Bankruptcy Exemptions
Unlimited Florida homestead exemption in bankruptcy preempted by federal law
Certainly, Florida bankruptcy exemptions apply in all chapter 7 cases. The unlimited homestead value authorized by the state statutes received a high level of scrutiny for years, and ultimately, was the impetus for passage of new bankruptcy laws that cap maximum homestead value by federal preemption. Nevertheless, the Florida homestead exemption remains one of the highest in the country. To take advantage of the allowance however, new bankruptcy laws now require a minimum of 2 years state residency in Florida to claim the Florida bankruptcy exemptions. Only the Florida homestead exemptions are allowed. Federal exemptions are authorized in only fourteen states in the U.S.
Designating the Florida homestead exemption for expected bankruptcy
Anyone owning multiple tracts of land should formally designate their homestead. Ordinarily, the primary residence is presumed to be homestead property. But if renting a home and owning land, or owning multiple tracts, creditors notoriously dispute primary residence status and target the most valuable tract for liquidation. These frivolous tactics are easily defeated by filing a formal homestead designation with the clerk's office.