What is exempt from debt collection in Florida?
Florida statutory exemptions protect certain assets of a debtor from being seized by creditors to satisfy a judgment. Notable exemptions include the homestead exemption, which protects the debtor's primary residence regardless of value, personal property up to $1,000, and wages of a head of family.
- Retirement accounts such as 401(K)s.
- Proceeds from life insurance and annuities.
- Federal student loans.
- State disability and state welfare benefits.
- Social Security Insurance benefits.
- Veterans' federal benefits.
- Unemployment benefits (except where child support debt is involved)
Key assets that are protected from creditors in Florida include: Homestead property, with some acreage limitations. Head of household wages. Annuities.
The FCCPA prohibits creditors and debt collectors from engaging in abusive, harassing, unfair, fraudulent, deceptive, or misleading practices. Some actions that creditors and debt collectors can't do under the FCCPA include: pretending to be a police officer and acting on behalf of a government agency.
In a Chapter 13 bankruptcy in Florida, nonexempt property is property that is not protected by exemptions and can be included in the debtor's repayment plan. The role of nonexempt property in Chapter 13 bankruptcy is to provide a source of income for creditors.
Your wages cannot be garnished if your disposable earnings (income minus any required withholdings) are $750 a week or less. That's up to $39,000 per year after deductions. Under federal law, 15 U.S.C. 1673, garnishments may not exceed 25% of a debtor's disposable income in most cases.
In Florida, if your disposable income is less than 30 times the federal minimum wage, your wages can't be garnished at all. (Fla. Stat. § 222.11).
Homestead property
In Florida, a homestead is exempt from creditor's claims, thus it is not considered to be part of a decedent's probate estate. As a result, a Florida homestead can be transferred to the heirs without undergoing probate.
There are four ways to open a bank account that no creditor can touch: (1) use an exempt bank account, (2) establish a bank account in a state that prohibits garnishments, (3) open an offshore bank account, or (4) maintain a wage or government benefits account.
The sheriff's department can seize: Personal property: movable things (e.g., cars, horses, boats, furniture, jewelry) owned by the debtor. Real property: land and buildings owned by the debtor.
What are three things debt collectors are prohibited from doing?
Debt collectors cannot harass or abuse you. They cannot swear, threaten to illegally harm you or your property, threaten you with illegal actions, or falsely threaten you with actions they do not intend to take. They also cannot make repeated calls over a short period to annoy or harass you.
If you are struggling with debt and debt collectors, Farmer & Morris Law, PLLC can help. As soon as you use the 11-word phrase “please cease and desist all calls and contact with me immediately” to stop the harassment, call us for a free consultation about what you can do to resolve your debt problems for good.
The statute of limitations for debt in Florida is five years. A creditor has five years to sue you for the money you owe. Most debts are based on written agreements, and the statute of limitations period for contract actions is five years.
The $25,000 TPP exemption
If you own TPP at or below $25,000 in assessed value, you will be eligible for a property tax exemption (provided you file your TPP return on time). The waiver applies in all subsequent years that the value of the property stays at or below $25,000.
Two new laws passed this week in Florida are a boon to Florida debtors with inherited retirement accounts and interests in LLCs. “Florida has always been a very debtor-friendly state and these new laws enhance its reputation,” says Marc Soss, a tax lawyer in Sarasota, Fla.
Generally, your creditor has legal authority to seize your car as soon as you default on your loan. Once you are in default, your creditor may repossess your car at any time without prior notice and may come onto your property to do so.
Some sources of income are considered protected in account garnishment, including: Social Security, and other government benefits or payments. Funds received for child support or alimony (spousal support) Workers' compensation payments.
A debt collector ultimately could garnish your bank account or your wages if you live in Florida. The first thing they would need to do is file a lawsuit against you for the debt, once they obtained a judgment, they can record that judgment and proceed with debt collection.
The Florida statute of limitations on debt can protect you
Note that they can still contact you in an attempt to recover the debt, and they may even sue you.
And, if you make less than the federal minimum wage, your entire paycheck is not eligible for garnishment. Similarly, if you receive or have received need-based aid within the last six months, your wages cannot be garnished.
How do I claim exemption from garnishment in Florida?
IF AN EXEMPTION FROM GARNISHMENT APPLIES TO YOU AND YOU WANT TO KEEP YOUR WAGES, MONEY, AND OTHER PROPERTY FROM BEING GARNISHED, OR TO RECOVER ANYTHING ALREADY TAKEN, YOU MUST COMPLETE A FORM FOR CLAIM OF EXEMPTION AND REQUEST FOR HEARING AS SET FORTH BELOW AND HAVE THE FORM NOTARIZED.
Social security benefits, including both social security income and disability, are exempt from garnishment under Section 207 of the Social Security Act. These benefits retain their exemption after being deposited into the debtor beneficiary's financial accounts.
The best-known Florida asset protection strategy is the Florida homestead. The Florida Constitution protects a debtor's primary residence from levy and execution to collect a debt. There are no value limits on homestead protection.
Under most circ*mstances, a lien cannot be placed on your home for a debt that has nothing to do with your home. However, creditors who lend you money to buy, improve or repair your home may put a lien on your home.
If you live in Florida and you have unsecured creditors hounding you for payment, you are protected from having your home foreclosed on so that payment to them can be made. Those creditors are legally able to put a lien against your property, but you will not lose it to foreclosure.
