Category Archives: Bankruptcy Planning

Florida Exemptions

As I take down my website, I thought I would post the following list of exemptions applicable in Florida. The reader should consult an attorney for any updates and how the exemption law applies in your particular case. Exemption List Will I lose my home if I file bankruptcy?  Will I lose my car?  Can I protect my retirement account?  The answers to these questions are based on the law of exemptions from the claims of creditors or from the bankruptcy trustee. The following is a list of several exemptions for Florida residents. Florida residents who have not resided in Florida for two years cannot use these exemptions in bankruptcy. However, the debtor often is better off using the prior states’ exemptions, except as to the homestead. This list does not mean you can now transfer the asset to make it exempt. The exemption can be rejected because you fraudulently…
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Bankruptcy Planning: Don’t do the following!

Bankruptcy Planning: What not to do As I take down my website, I thought I would post the following information I have had on my website for years. Still good advice. Thirty-Three DON’TS in preparing to file a Chapter 7 1.  Don’t leave out Bank, Checking, Savings, Brokerage, Credit Union accounts. 2.  Don’t keep a bank account where you owe money such as a credit card debt. 3.  Don’t use your credit cards. 4.  Don’t take Credit Card Cash Advances. 5.  Don’t use convenience checks. 6.  Don’t do balance transfers. 7.  Don’t pay money to family. 8.  Don’t pay money to friends. 9.  Don’t tell a creditor that you intend to pay. 10. Don’t leave assets off of your paperwork. 11. Don’t file bankruptcy if you are about to receive a tax refund or inheritance.  Discuss the timing with your attorney. 12. Don’t fail to tell your attorney about your…
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Beware Home Office Income Tax Deduction

The home office income tax deduction has formed the basis for a denial in part of the Florida homestead exemption.   More specifically, there is now case authority that the exclusive use of a portion of a Florida homestead which in part can be evidenced by the home office income tax deduction and depreciation of the home  justifies apportioning the residence to homestead and non- homestead.  The idea is as follows:  Suppose 25% of the home is exclusively used for business such as an office.  Or assume that 25% is exclusively used by a tenant who is paying rent for one room in the home.   The trustee can sell the home, 75% of the equity belongs to the debtor, and 25% of the net proceeds would be retained by the trustee. Sounds contrary to the whole idea of the liberal protections for a Florida homestead? Sounds contrary to the…
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