How Bankruptcy Laws in Florida Differ From Other States

If you’ve been researching bankruptcy online, you’ve probably noticed something frustrating right away: every source seems to say something different.

That’s because bankruptcy laws vary from state to state in ways that can make a big difference in your case. If you spent hours reading articles only to realize the rules they found don’t apply to Florida, you aren’t alone.

Understanding how our state’s laws differ can help you make better decisions and give you a clearer picture of what filing here actually looks like.

Florida’s Exemption Laws Are Some of the Most Generous

One of the most important differences is the way Florida handles exemptions. These are the laws that determine what property you get to keep when you file.

Florida is known for having some of the strongest exemptions in the country, especially when it comes to your home. If your property qualifies as your homestead and meets certain residency requirements, the protection is extremely broad.

This is very different from other states, where the homestead exemption may be limited to a specific dollar amount.

Florida also provides exemptions for personal property, wages for head-of-household earners, retirement accounts, and certain types of insurance benefits. Many of these protections are more generous than what you’d find elsewhere.

You Must Use Florida’s Exemptions, Not Federal Ones

Some states allow you to choose between state exemptions and federal exemptions. Florida doesn’t. Here, you must use the Florida exemption system.

For many people, this works in their favor, especially if they own a home. But because the rules are very specific, it’s important to understand how each exemption works before you file.

Residency Rules Matter More in Florida

Another key difference is the residency requirement.

To use Florida’s exemptions, you usually must have lived in the state for a certain amount of time before filing. If you recently moved to Florida, you may be required to use the exemption laws from your previous state.

This catches people off guard, especially if they moved here expecting Florida’s generous protections to apply immediately. An attorney can assess your residency and help you determine if you qualify for bankruptcy in Florida.

Florida’s Approach to Income and the Means Test

The means test is a federal requirement, but the income standards you’re compared to vary by state. Florida has its own median income levels, and these numbers play a major role in determining whether you qualify for Chapter 7 or whether Chapter 13 makes more sense.

Because Florida’s cost of living varies widely across the state, many people are surprised to learn they qualify for relief even when they assumed their income was too high.

How Florida Handles Certain Debts

Some debts are treated differently depending on state law.

For example, Florida provides strong protections for certain types of retirement accounts and insurance proceeds. There are also state-specific rules involving wage garnishment, lawsuits, and judgment liens. These can affect the timing of your bankruptcy and the options available to you.

Why Filing in Florida Requires State-Specific Guidance

Because bankruptcy is a mix of federal and state law, what works in another state may not work here. Filing in Florida can offer powerful protections, but only if you understand how to use the law to your benefit.

If you’re thinking about bankruptcy or trying to make sense of how our laws apply to your situation, The Law Offices of Robert M. Geller can walk you through the process with clarity and compassion. Contact us today to learn more.