If you file bankruptcy in Florida, you must use Florida's state exemptions plus the federal nonbankruptcy exemptions — Florida has "opted out" of the federal bankruptcy exemption system under Florida Statutes § 222.20, so you cannot choose the alternative federal exemption set found in 11 U.S.C. § 522(d) that some states allow. In exchange, Florida gives you one of the most powerful protections in the country: a homestead exemption with no dollar limit on equity, capped only by lot size. That single rule is why so many people who relocate to Florida keep far more of their home than they could almost anywhere else.
The Florida homestead exemption: unlimited value, limited acreage
Florida's homestead protection comes from the Florida Constitution, Article X, Section 4, not just a statute. There is no cap on the dollar value of equity you can protect in your primary residence. What is limited is the size of the property. If your home is inside a municipality, the exemption covers up to one-half acre. If it is outside a municipality, it covers up to 160 contiguous acres. Equity in a fully paid-off Florida home worth several hundred thousand dollars or more can be entirely protected, provided it fits within those acreage limits and is your actual residence.
This is dramatically more generous than the federal homestead exemption under 11 U.S.C. § 522(d)(1), which protects only a limited amount of home equity that is adjusted every three years. It is also why Florida is sometimes called a "debtor-friendly" state for homeowners.
There are important federal limits layered on top, however. Under the federal Bankruptcy Code (added by the 2005 BAPCPA reforms), if you acquired your Florida home within roughly 1,215 days (about 40 months) before filing, your homestead exemption may be capped at a federal dollar figure that Congress adjusts every three years. Because that number changes, confirm the current cap with the U.S. Courts or the bankruptcy court before relying on it. The cap is aimed at people who move large amounts of cash into a homestead shortly before filing to shield it from creditors.
The vehicle exemption
Florida lets you exempt up to $1,000 of equity in one motor vehicle under Florida Statutes § 222.25(1). This is the value of your interest after subtracting any loan balance. If you owe more on the car than it is worth, you generally have no nonexempt equity and can keep the car as long as you stay current on the loan. If you own a paid-off car worth more than $1,000, the wildcard exemption (below) can often cover the difference.
Personal property and the $4,000 wildcard
Florida's Constitution provides a base personal-property exemption of $1,000 for items such as furniture, electronics, clothing, and other belongings (Article X, Section 4). Married couples filing jointly can each claim their own exemptions, effectively doubling many of these amounts.
On top of that, Florida offers a valuable wildcard under Florida Statutes § 222.25(4): an additional $4,000 in personal property — but only if you do not claim or receive the benefit of the homestead exemption. In practice, this means renters, or homeowners who choose not to protect their home (for example, because they plan to surrender it), can apply the extra $4,000 to a car, a bank account, household goods, or almost any other personal property. If you keep your homestead, you lose access to this $4,000 wildcard. Deciding whether to use it is one of the most consequential planning choices in a Florida case.
Wages, retirement accounts, and other protections
Florida also protects the wages of a "head of family" under Florida Statutes § 222.11. If you provide more than half the support for a child or other dependent, your earned but unpaid wages — and wages deposited in a bank account for up to six months — can be fully exempt up to $750 per week, with amounts above that protected unless you agreed in writing otherwise. This is far stronger than the federal baseline, which under the Consumer Credit Protection Act caps ordinary garnishment at 25% of disposable earnings.