When it comes to Asset Protection, Florida has one of the best homestead exemptions in the Country. However, that exemption often comes under fire, especially in situations where creditors feel the exemption is an unfair impediment to them collecting against a borrower.
Thank you to our Yesner Law Podcast listener Larry, who asked us the following question about wage garnishment and asset protection:
When a borrower defaults on a payment obligation, whether a mortgage payment, credit card payment, signature loan, student loan, or any other type of repayment agreement, their first concern is normally asset protection, "will the creditor take my house away from me?". Our response differs based on the type of debt and whether the borrower has a homestead residence. When they hear this, some clients respond "I did not file for the homestead exemption. Is that going to be a problem?"