Exempt property is assets that you may keep even when you file bankruptcy. The Bankruptcy Trustee can not seize these assets. In Florida exempt property includes your residence (a/k/a homestead), retirement accounts, life insurance, and wages payable to the head of a family.
In a Chapter 7 Case, the date of the bankruptcy filing is very significant. For example, an IRA account that is exempt on the date of filing can be liquidated after the bankruptcy filing (and after the exemption is allowed by the bankruptcy court), and the funds withdrawn without losing their exempt status.
Chapter 13 Cases are different, where property acquired post-filing may enter the bankruptcy estate. For instance, a Chapter 13 debtor may (with court approval) sell the residence during the bankruptcy. However, the net proceeds of the sale must be reinvested in a replacement residence, or the exemption will no longer apply, and the funds will become part of the bankruptcy estate.
The Law Offices Of Todd S. Frankenthal handles bankruptcy cases in Broward County, Palm Beach County, and Miami-Dade County, Florida, where property asset exemption issues are addressed and resolved.
