Florida residents who are facing bankruptcy likely have concerns about what property is considered to be exempt from asset forfeiture. Exempt property is able to be retained by the debtor after the bankruptcy is discharged.
There are exemption limits to equity involving the property. In other words, if you have a vehicle with a $7,000 value but a loan of $6,000, the equity value will be only $1,000. Remaining current on the payments and staying within the equity limits may allow ownership of the property in question to survive a bankruptcy. When the equity is more than the exemption, the bankruptcy trustee can liquidate the asset and distribute the money to creditors. Cases resolved in this way may result in debtors receiving a cash payment in the value of the exemption.