When a debtor files for Chapter 7 bankruptcy he or she is allowed an exemption of $1,000 dollars ($2,000 for joint filings) for miscellaneous personal items including: cash, household furniture, clothing, and jewelry among other items.
These items are valued based upon the resale value of the item rather than the original cost. In other words, a dining room table purchased for $500 in 1999 might only be worth $100 dollars today. The table would be valued at today's value.
In 2007 the Florida legislature introduced a new "wild card" personal property exemption for the benefit of those debtors who do not claim a Homestead exemption. This personal property exemption is quite large - $4,000 ($8,000 joint filing.)
The presence of these exemptions means that most debtors filing Chapter 7 bankruptcy cases are non-asset debtors who will owe little or nothing to the trustee at the end of the case.
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