Florida Bankruptcy Exemptions
What You Get to Keep
By Juan C. Burgos, Esq. | Florida Bar #84056 | Bankruptcy Attorney, Orlando FL
TL;DR: Florida has some of the strongest exemption protections in the country. Your home can be fully protected regardless of value (with some conditions), retirement accounts are essentially untouchable, and you keep meaningful equity in a vehicle, plus full wage protection if you support a dependent. Bankruptcy in Florida is rarely about losing everything — it's about which specific rules apply to your situation.
Florida "opted out" of the federal bankruptcy exemption system, which means you use Florida's own exemptions, not the federal list. That turns out to work strongly in most filers' favor — Florida's protections for a primary home and retirement savings are among the most generous of any state.
The Homestead Exemption
Florida's homestead exemption protects your primary residence with no cap on value, provided the property fits within the size limits: half an acre if it's inside a municipality, or up to 160 acres if it's outside one. This is one of the most debtor-friendly homestead protections in the country.
The catch: if you acquired your homestead within the 1,215 days (about 40 months) before filing, federal law caps the protected equity at $214,000, regardless of Florida's unlimited state protection. This cap doesn't apply if you've owned the home longer than that.
Vehicle Exemption
You can protect up to $5,000 in equity in a single motor vehicle. This was recently increased from the $1,000 figure that's still floating around on a lot of older articles — if you've read $1,000 somewhere, that information is outdated.
Personal Property (Wildcard)
If you don't claim the homestead exemption, you can instead protect up to $4,000 in personal property of any kind. It's a real trade-off — you generally can't use both the unlimited homestead protection and this $4,000 wildcard at the same time.
Retirement Accounts
This is where Florida really stands out. 401(k)s, IRAs, pensions, and other IRS-qualified retirement accounts are protected with no dollar limit under Florida law — a much stronger protection than the federal exemption scheme, which caps certain IRA protections. In most cases, your retirement savings are simply not part of the conversation in a Florida bankruptcy.
Wages
If you're the "head of family" — meaning you provide more than half the support for a child or other dependent — 100% of your disposable earnings are protected from garnishment as long as they're $750 a week or less. Above that threshold, your wages can only be garnished if you specifically agreed to waive this protection in writing. If you're not a head of family, standard federal wage garnishment limits apply instead.
Life Insurance and Annuities
The cash surrender value of life insurance policies and the proceeds of annuity contracts are fully protected from creditors under Florida law, as long as the policy wasn't taken out specifically for a creditor's benefit.
One Requirement to Know: Residency
To use Florida's exemptions, you generally need to have been domiciled in Florida for at least 730 days (two years) before filing. If you moved to Florida more recently than that, the exemptions of your previous state may apply instead — this is worth discussing with an attorney if you're a recent transplant.
Frequently Asked Questions
Is there really no limit on my home's value under the homestead exemption?
Correct, as long as it fits the acreage limits — but if you bought the home within the last 1,215 days, federal law caps the protected equity at $214,000 regardless of Florida's unlimited protection.
How much vehicle equity can I protect?
$5,000 in one motor vehicle. This was increased from $1,000 by a 2024 change to Florida law, so don't trust older articles citing the lower figure.
Are my 401(k) and IRA safe in a Florida bankruptcy?
Generally yes. Florida law protects IRS-qualified retirement accounts with no dollar cap, which is stronger than federal exemption limits.
Will my paycheck be garnished if I file?
If you support a dependent and earn $750/week or less in disposable income, no. Above that, your wages are still protected unless you've signed a specific written waiver.
I just moved to Florida — do these exemptions apply to me?
You generally need 730 days of Florida residency to use Florida's exemptions. If you moved recently, talk to an attorney about which state's exemptions apply to your case.
Find Out What You Can Protect
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This article is for general educational purposes and does not constitute legal advice or create an attorney-client relationship. Exemption amounts reflect Florida Statutes Chapter 222 and federal bankruptcy law as of the publish date and are subject to change by the Florida Legislature or Congress. Attorney Juan C. Burgos is a federally designated debt relief agency helping families and businesses file for relief under the United States Bankruptcy Code.
Gracias a su apoyo pude organizar mi situación financiera y atravesar este proceso con confianza y esperanza.
Lo recomiendo 100 % a cualquier persona que necesite un abogado de bancarrota responsable, comprometido y verdaderamente interesado en ayudar a sus clientes.
¡Mil gracias por todo, abogado Burgos!