governor rum desantis has vetoed legislation that would increase the maximum value of a motor vehicle that can be exempt from bankruptcy cases from $1,000 to $5,000.
The legislation would raised the value of the exemptione of a debtor’s interest in a motor vehicle of $1,000 to $5,000 in bankruptcy cases. In its shipping letter In announcing his veto of the bill, DeSantis stated that the increased exemption amount should also apply to non-bankruptcy proceedings, in an effort to discourage bankruptcy.
“Although it may be time to consider increasing the obsolete exemption amount, this increase should apply to all people who can claim Florida exemptions, whether in or out of bankruptcy, so that people have no incentive to file for bankruptcy, which has a long duration. , negative consequences for a person’s credit history,” DeSantis wrote in the transmittal letter.
Currently in Florida, a debtor has a constitutional right to exempt his or her home from creditor claims as long as the property is used as a primary residence, according to the invoice analysis. If a debtor is homeless, state law allows the debtor to exempt $4,000 of personal property in a bankruptcy proceeding.
However, additional state exemptions include wages earned as head of household, cash surrender value of life insurance policies and annuity contracts, exempt pension funds and retirement accounts, and up to $1,000 of the debtor’s interest in a motor vehicle, which lawmakers sought to eliminate. increase to $5,000.
“Historically, exempt assets have remained off limits to creditors unless specifically pledged in a security agreement. During bankruptcy proceedings, the court determines whether the property is exempt from the process under the non-bankruptcy law,” reads the analysis of the bill.