Florida Bankruptcy Law Allowing Prepaid College Trust Exemption Or Medical Savings Account

Fla.Stat. §222.22 "Exemption of moneys in the Prepaid College Trust Fund or in a Medical Savings Account from legal process.  (1)(a) Moneys paid into or out of the Florida Prepaid College Trust Fund by or on behalf of a purchaser or qualified beneficiary pursuant to an advance payment contract made under part IV of chapter 1009, which contract has not been terminated, are not liable to attachment, garnishment, or legal process in the state in favor of any creditor interested in a Florida bankruptcy proceeding, of the purchaser or beneficiary of such advance payment contract. (b) Moneys paid into or out of the Prepaid College Trust Fund by or on behalf of a benefactor or designated beneficiary pursuant to a participation agreement made under s. 1009.981, which agreement has not been terminated, are not liable to attachment, garnishment, or legal process in the state in favor of any creditor of the purchaser or beneficiary of such participation agreement. (2) Moneys paid into or out of a Medical Savings Account by or on behalf of a person depositing money into such account or a qualified beneficiary are not liable to attachment, garnishment, or legal process in the state in favor of any creditor of such person or beneficiary of such Medical Savings Account." Florida bankruptcy exemptions apply automatically.

Operation of Florida bankruptcy laws

According to 11 U.S.C. 522(l) "The debtor shall file a list of property that the debtor claims as exempt under subsection (b) of this section. If the debtor does not file such a list, a dependent of the debtor may file such a list, or may claim property as exempt from property of the estate on behalf of the debtor. Unless a party in interest objects, the property claimed as exempt on such list is exempt." The trustee, creditors, an interested party, or the court upon it's own motion, may file an objection to exemptions in Florida bankruptcy proceedings. Denial requires notice to debtors and hearing.

Back to Florida Bankruptcy Laws.