What Creditors Cannot Take in Florida

Florida law shields a person’s home, wages, retirement accounts, annuities, life insurance, and several other asset categories from judgment creditors. These protections come from three sources—the Florida Constitution, state statutes in Chapter 222, and federal law—each with its own qualification rules and enforcement procedures.

Exemptions are not automatic. A creditor can freeze or seize any asset first, and the person who owes the debt must assert the applicable protection by filing a claim of exemption within 20 days of receiving notice. Missing that deadline can cost the protection entirely, even when the underlying asset qualifies.

Your Home

Florida’s homestead exemption is the strongest debtor protection in the state. The Florida Constitution shields a primary residence from forced sale by judgment creditors, with no cap on equity. A person can own a home worth $5 million and protect every dollar of that equity from a civil judgment.

The exemption covers up to half an acre inside a municipality or 160 acres outside one. The property must be the owner’s primary residence. Vacation homes, rental properties, and investment real estate do not qualify. Mortgages, property tax liens, mechanics’ liens, and HOA assessments are not blocked by the exemption.

Because the homestead exemption is constitutional rather than statutory, the legislature cannot repeal or reduce it. Only a statewide constitutional amendment approved by voters could change its scope. No other exemption in Florida has that level of durability.

Homestead sale proceeds retain protection temporarily if the owner intends to reinvest in a new homestead within a reasonable time. Courts evaluate both the stated intent and the debtor’s actual conduct when deciding whether proceeds remain exempt.

Wages and Earnings

The head of household exemption protects all wages from garnishment when a person provides more than half the financial support for a child or other dependent. The governing statute is § 222.11. If the person’s net disposable earnings are $750 or less per week, the protection is absolute. Above that threshold, wages remain exempt unless the person signed a written waiver.

Deposited wages retain their exempt status for six months if traceable to head of household earnings. Commingling exempt wages with non-exempt funds in the same account can destroy the exemption by making tracing impossible. Maintaining a separate wage account is the most reliable way to preserve the protection after deposit.

For people who do not qualify as head of household, federal law limits garnishment to 25% of disposable earnings or the amount exceeding 30 times the federal minimum wage, whichever is less.

Retirement Accounts

Florida provides unlimited creditor protection for retirement accounts. The exemption under § 222.21 covers ERISA-qualified plans such as 401(k)s, pensions and profit-sharing plans, traditional and Roth IRAs, SEP-IRAs, SIMPLE IRAs, and inherited IRAs. There is no dollar cap under Florida law.

Self-directed IRAs also qualify, provided the account structure complies with IRS requirements. Employee stock ownership plans and 529 college savings plans each receive separate statutory protection under § 222.22.

The exemption protects funds while held inside the retirement account. Once money is withdrawn or distributed, it loses its protected status and becomes reachable by creditors unless deposited into another exempt form.

Annuities

The annuity exemption protects the cash surrender value and proceeds of annuity contracts issued to Florida residents. The statute, § 222.14, imposes no dollar limit and applies to both fixed and variable annuities purchased through licensed insurance companies.

Private annuities created through individual contracts rather than insurance companies may not receive the same protection. Courts have distinguished between commercially issued annuity products and informal payment arrangements structured as annuities. The exemption is strongest when the annuity is purchased from a licensed carrier before any claim arises.

Life Insurance

The life insurance exemption protects both the cash surrender value and the death benefit of policies issued on the lives of Florida residents. The protection comes from § 222.14. Whole life and universal life policies accumulate cash value that creditors cannot reach. Term policies have no cash value component but their death benefit remains protected.

The death benefit must pass outside of probate to retain full protection. If the policy proceeds flow through the insured’s estate, they become available to creditors of the estate. Naming a specific beneficiary rather than the estate preserves the exemption.

Tenants by the Entireties Property

Tenants by the entireties is a form of joint ownership available only to married couples. Property held as TBE is shielded from the individual creditors of either spouse. A creditor with a judgment against one spouse cannot force the sale of, lien, or garnish TBE property.

TBE protection applies to bank accounts, investment accounts, real property, and personal property. Both spouses must agree to the ownership form, and the property must be acquired during the marriage. The protection does not apply to joint debts where both spouses are liable.

Social Security and Federal Benefits

Social Security benefits receive absolute federal protection from private creditor garnishment. The governing statute, 42 U.S.C. § 407, applies regardless of the amount. Banks must automatically protect two months of directly deposited Social Security funds under federal regulation, even without a claim of exemption filing.

Supplemental Security Income, veterans’ benefits, workers’ compensation, disability income, and unemployment compensation are each independently exempt under separate federal and state statutes. These protections cannot be waived.

Personal Property and Vehicles

Florida’s personal property exemption shields up to $1,000 in personal property from creditor seizure. The exemption is constitutional, found in Article X, § 4. A person who does not claim a homestead exemption can claim an additional $4,000 in personal property under § 222.25(4), raising the total to $5,000.

The motor vehicle exemption under § 222.25(1) protects up to $5,000 of equity in a single motor vehicle. A person who does not claim homestead can combine the $4,000 wildcard with the $5,000 vehicle exemption, protecting up to $9,000 in vehicle equity.

These are among the lowest personal property exemptions in the country. Jewelry, electronics, collectibles, and other personal property above the exemption thresholds are reachable by creditors.

Other Statutory Protections

Florida exempts several additional categories of property that receive less attention but can matter in specific situations. Prescribed health aids for the person or their dependents are fully exempt under § 222.25(2). Health savings accounts, Coverdell education savings accounts, and hurricane savings accounts are protected under § 222.22. Earned income tax credits are exempt under § 222.25(3).

Crime victims’ compensation is protected under § 960.14. Fraternal benefit society payments are exempt. Public employee pensions—including firefighter, police, and teacher retirement systems—receive their own statutory protections separate from the general § 222.21 exemption.

What Creditors Can Reach

Florida’s exemption system is among the strongest in the country, but it leaves several categories of wealth exposed. Non-homestead real estate—including rental properties, vacation homes, and undeveloped land—can be liened and sold to satisfy a judgment. Taxable brokerage and investment accounts held outside a retirement vehicle or annuity are fully exposed. Bank account balances that exceed traceable exempt deposits are subject to garnishment.

Business interests in single-member LLCs face particular risk. A bankruptcy trustee can exercise management control and liquidate the assets. Multi-member LLCs with charging order protection provide stronger shielding, but only if the operating agreement and membership structure are properly maintained.

Restricted stock, unvested equity compensation, accounts receivable, intellectual property, and cash reserves in non-exempt forms are all available to creditors. Vehicles with equity above $5,000 are exposed to the extent they exceed the cap.

A person worth $2 million may protect $1 million in homestead equity, $400,000 in retirement accounts, and $150,000 in annuities, while the remaining $450,000 in brokerage accounts and rental property sits fully exposed. For non-exempt wealth above what Florida’s statutory protections cover, offshore asset protection trusts hold assets outside the U.S. legal system entirely, providing structural protection that state exemptions cannot match.