Florida Bankruptcy Laws Regarding Wages & Unemployment Compensations

Fla.Stat. §222.16 "Wages or unemployment compensation payments so paid not subject to administration.--Any wages, travel expenses, or unemployment compensation payments so paid under the authority of s. 222.15 shall not be considered as assets of the estate and subject to administration; provided, however, that the travel expenses so exempted from administration shall not exceed the sum of $300."

Operation of law

All current wages are exempt and may be retained in either Chapter 7 or Chapter 13. In practice, retaining status as "wages" for purpose of cash exemptions may be difficult for more than 30 days. Assume that wages convert to savings at some future date, which are not covered by the statute. Also, commingling current wages with savings or other accounts may destroy the application of this exemption. Creditors may file objections and, after notice and hearing, request the court to set aside all non-conforming exemptions. Many debtors use savings and other non-exempt assets to pay regular monthly expenses just before filing.

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