Florida Bankruptcy Laws and the Cash Surrender Value of Life Insurance
Fla.Stat. §222.14 "Exemption of cash surrender value of life insurance policies and annuity contracts
from legal process. The cash surrender values of life insurance policies issued upon the lives of citizens or
residents of the state and the proceeds of annuity contracts issued to citizens or residents of the state, upon
whatever form, shall not in any case be liable to attachment, garnishment or legal process in favor of any
creditor of the person whose life is so insured or of any creditor of the person who is the beneficiary of such
annuity contract, unless the insurance policy or annuity contract was effected for the benefit of such creditor."
In Practice
In the most basic sense, cash surrender values and regular monthly payments under annuity contracts are
considered similar to wages earned rather than a liquid asset or investment. Be aware, unusual payments,
prepayments, and excess payments during the weeks and months before filing may violate numerous fraudulent
conveyance statutes. In particular, the 30 day statute and one year statute apply to prepayments.
Back to Florida Bankruptcy Laws.
|
