Florida Bankruptcy Law – How Much Cash Can You Keep When Filing Chapter 7?
Florida bankruptcy law limits how much cash you can keep in a Chapter 7 bankruptcy. The state of Florida requires you to have owned your property for 1,215 days before filing Beenz. Generally, you can keep as much as half of your assets. There are some exemptions you may not be able to keep depending on your situation.
Bankruptcy is not the first choice for debt relief. However, if you can’t pay your bills, it’s a viable option. A chapter 7 bankruptcy will get rid of unsecured debt and will allow you to keep your home and property easysolution24. However, you’ll have to turn over any cash assets to your bankruptcy trustee.
In Florida, there are two means tests for filing chapter 7. The first requires a household income that is less than the median income in the state thedigitalscale. As of November 2020, the median income for a three-person family in Florida was $70815. If your income is higher, you’ll have to pass the second test based on disposable income. To pass this test, you must estimate your future disposable income over five years. You’ll need to multiply your current gross income by 60 and subtract your allowable expenses. You’ll need to keep your projected income below either $7,025 or $11,725. That’s about 25% of your unsecured debt world247zone.
Another type of property exemption Florida offers is the wildcard exemption. The wildcard exemption allows you to keep more property than the other types of exemptions. Typically, this exemption applies to a home that’s more than half an acre in size and has been owned for at least one year. This exemption also provides protection for a homestead that’s worth over $1,000. The wildcard exemption doubles when you’re married forexbit.