What Is a Claim of Exemption?
When a creditor wins a lawsuit and secures an abstract of judgment, they have the legal right to collect the money owed by garnishing the debtor's wages, seizing their bank accounts, or forcing the sale of their property. However, the law recognizes that debtors still need a place to live and a way to survive.
A Claim of Exemption is the defensive legal filing a debtor uses to stop a creditor's collection efforts. By filing this claim in court, the debtor asserts that the targeted asset is legally exempt (protected) under state or federal law and cannot be touched by the creditor.
Florida Real Estate Exemptions
Florida is known as a "debtor's haven" because its asset protection laws are incredibly strong. The most powerful exemption involves real estate: the homestead creditor exemption (Article X, Section 4 of the Florida Constitution). If a creditor attempts to force the sale of a home or place a judgment lien on it, the homeowner will file a Claim of Exemption proving that the property is their primary residence. Once proven, the home is 100% protected from forced sale, regardless of its value.
Other common Florida exemptions include:
- Head of Household Wages — If the debtor provides more than half the support for a dependent, their wages cannot be garnished.
- Tenancy by the Entireties — Real estate owned jointly by a married couple cannot be seized to pay the debts of only one spouse.
- Retirement Accounts and Annuities — Fully protected from creditors.
The Filing Process
When a creditor initiates a wage garnishment or a property levy, the debtor is served with a notice. The debtor typically has only 20 days to file a Claim of Exemption with the court and request a hearing. If they fail to file the claim within that strict deadline, they waive their rights, and the creditor can seize the exempt asset anyway.
Related Terms
- Homestead Creditor Protection — The primary real estate exemption in Florida
- Abstract of Judgment — The creditor's claim that triggers the need for an exemption
- Bankruptcy — A federal process that heavily relies on claiming state exemptions
Barnes Walker Asset Protection
Barnes Walker's attorneys assist Florida residents in structuring their real estate investments to maximize statutory exemptions and defend homeowners against aggressive creditor collection actions. Request a legal inquiry for assistance.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC