What can I do in Florida?

I'm filing Chapter 7 bankruptcy in Florida. What can they take from me?

• I'm unemployed and filing Ch. 7. I live in Florida, and I'm a little worried about what they can and can't take. I own two vehicles, neither of which is running or even registered right now. A 1988 Suzuki Samurai and a 1988 Ford Ranger. Both are all beat up and we've been slowly putting little bits of money into fixing them when we can. If they take these, we will have to start all over and buy a new car, which we can't afford. I also own a very nice computer desk, which is an heirloom from my father, and I wouldn't be able to bear parting with it. Other than that, we own a computer and a laptop. The laptop is my daughter's for her schoolwork but is 7 years old and wouldn't sell for anything now. And I use the desktop pc to find work, since I have no running vehicle it's much easier than riding the bus all over town looking for employment. I have a big screen tv, but it's 7 years old, not even flat - it's got the old-style rounded screen. I've tried to pawn it and they won't even take it. If they take this, I'll have no tv at home and I suppose I'll have to deal. But I like to have it for family tv time in the evenings. Also, my daughter has an xBox 360, a gift for Christmas. Could they take this? My home is rented, no worries there. And our furnishings are all hand-me-downs. What of these things should I be concerned about them taking?

• Answer:

  Here is a list of what property a bankruptcy filer is allowed to keep in Florida. From what I can see, you are probably ok. Your daughter's xBox is her property, so that is safe no matter what. Exempt Property 1. Homestead. Your homestead is exempt property under Article X, Section 4 of the Florida Constitution. This protection is afforded homestead properties situated on one-half acre or less within a municipality and properties up to 160 acres outside a municipality. There is no dollar limitation. The homestead exemption applies to all Florida residents. The new bankruptcy law does not affect homestead protection for Florida residents in state court proceedings. The new bankruptcy law does change the homestead exemption for Florida residents who file bankruptcy. Under the new law you can protect unlimited equity in your homestead provided you purchased the residence 40 months or more prior to filing bankruptcy. If you purchased your home within 40 months the new law exempts up to $137,000 of equity. The exemption amount is increased (effective April, 2007) from the original $125,000 to approximatley $137,000 per person. Additionally, if you injected cash in your home within the 40 months, such as by paying down the mortgage or building a home addition, the amount of investment made within the 40 months will not be exempt even if you purchased the home 40 months prior to filing. The $137,000 homestead exemption limit applies only in bankruptcy cases. Several courts have held that a married couple filing jointly can claim two homestead exemptions for a total homestead protection of $274,000. 2. Statutory Exemptions Chapter 222 of the Florida Statutes includes several categories of exempt property, including: pensions, 401K plans, tax deferred retirement plans, Social Security income, disability income, IRAs, annuities, cash value of life insurance, college investment plans (including 529 Plans), health savings accounts, and hurricane savings accounts. 3. Automobile Exemption: You are allowed to exempt $1,000 of equity in an automobile. Spouses who jointly own a car may exempt $2,000 of value in that car. Most bankruptcy trustees use the average retail/wholesale value from the yellow NADA book, adjusted for the condition of your car. If the balance of your car loan is greater than the car value (“upside down”) then you have no car equity and your car is protected in bankruptcy so long as you keep your car payments current. 4. Miscellaneous personal property exemption. Each bankruptcy debtor is allowed to exempt $1,000 ($2,000 for joint filings) of all other personal property including furniture, cloths, tools, and estimated cash on hand. For bankruptcy purposes the value of your personal property is its current fair market value at a public market such as a garage sale or flea market sale. A new Florida statute effective July 1, 2007, provides a $4,000 "wildcard" personal property exemption to bankruptcy debtors who do not claim a homestead exemption. You must not own a home or intend to surrender the home you do own to the mortgage lender in order to qualifiy for the wildcard exemption. Joint debtors can claim a $8,000 wildcard exemption.