DeSantis Vetos Increasing the FL Bankruptcy Motor Vehicle Exemption From 1k to 5k

[Ekop785]

I don't believe for a minute that he would put through anything that would make it easier for a BK filer to keep their vehicle. I have to agree with flashoflight.

[justbroke]

I don't live in Florida so I don't know whether to believe DeSantis would actually sign any future revised legislation to exempt cars up to $5k outside of BK. I have enough distrust in politicians to not believe a word they are saying regardless of whether they are blue or red. My bet is that he will find a different reason to veto the revised legislation.

Since it was unanimous in the Florida House and Senate, I would believe that he does care that it did not go far enough. The Florida House and Senate, with a unanimous vote, means they can override this specific veto quite easily, since there were 0 dissents. The question is could they get a revised bill in front of the governor before the session ends.

If we all remember how legislative sessions work is that once they go home, a particular topic may never be brought back to the floor. Even when they had a 100% "YAY" vote.

So, it wouldn't matter if he wouldn't sign, they have the veto power and the 100% vote sent that message clearly.

[flashoflight]

In California, state law does not protect IRAs adequately from creditors. Debtors can shield the IRA by claiming the IRA is needed for the support of the household. What actually happens is that anyone who isn't drawing on the IRA will forfeit to creditors. Judges feel anyone who is still working can rebuild the IRA once it's zeroed out by creditors. I understand it's difficult for creditors to figure out where your IRA is without a debtor's exam, but the threat is still real. That's also why 401ks are heavily preferred for asset protection in California vs. IRAs.

When bankruptcy is filed, federal law supersedes state law and IRAs are protected up to $1.5 million without having to prove that the balance is needed for the support of the household. I would rather have the BK nuclear option if my IRA was being threatened by creditors in CA state court just like if I lived in FL, I would rather have the $5k BK car exemption in state law since that will allow the debtor to continue to commute to work even if it means the nuclear option.

Imagine the shock when I heard Newsom signed the legislation to increase California's homestead exemption from a measly $100k/$175k to $300k-$600k. California has been creditor friendly despite being a blue state. For example, we used to have zero exemption for cash in a bank levy. With the expanded homestead exemption and the new exemption for cash, things are looking up for debtors in California.

I don't live in Florida so I don't know whether to believe DeSantis would actually sign any future revised legislation to exempt cars up to $5k outside of BK. I have enough distrust in politicians to not believe a word they are saying regardless of whether they are blue or red. My bet is that he will find a different reason to veto the revised legislation.

[shipo]

This was an awful thing to do. People should be incentivized to go bankrupt. The mass of the lower class should get immediate discharge. That would radically lift the country into a productive mood.

A nation of debtors is a very weak and vulnerable nation.

You sure love to play the "Oh poor me, I'm a victim of the big banks (and/or whatever large entity you choose to blame for a day)", sorry, not buying.

[justbroke]

As a Floridian, it's a little more complex than what the news would lead you to believe. Unfortunately, the press got it wrong. The article is misleading at best, and dishonest at worst.

The bill passed both the Florida and house unanimously. The reason the governor rejected (vetoed) the bill is because he said that it didn't go far enough. He wrote, in his letter to the Senate "... this increase should apply to all persons who can claim Florida exemptions, whether in or out of bankruptcy." In other words, he doesn't want people to file bankruptcy just to get the exemption... he wants it so that this exemption applies to all legal process under State non-bankruptcy law.

But that paragraph does not stand alone. The real reason is in the preceding paragraph not shown in this original post... the bill would have provided "[f]or all other creditor matters, a debtor's interest in a single motor vehicle remains exempt up to $1,000 in value."

DeSantis wants it to be for all legal process, not just bankruptcy.)

In summary, he wants this unanimously approved bill to apply to everyone (not just those in bankruptcy). Think about it... he doesn't want you to file bankruptcy just to get the exemption from legal process. I say he's protecting the debtor if the House/Senate can get him a different revision of the bill not reducing the scope of the protection to solely those in bankruptcy.

I'll leave it at that.

[bornfree2]

May 23, 2022

.... It proposed increasing the exemption of debtors’ interests in motor vehicles from $1,000 to $5,000.

In a veto letter to Secretary of State Cord Byrd, DeSantis wrote the measure could incentivize people to seek bankruptcy protection.

“Although it may be time to consider increasing the outdated exemption amount, this increase should apply to all persons who can claim Florida exemptions, whether in or out of bankruptcy, so that people are not incentivized to file for bankruptcy, which has long-lasting, negative consequences for a person’s credit history,” DeSantis wrote.

This was an awful thing to do. People should be incentivized to go bankrupt. The mass of the lower class should get immediate discharge. That would radically lift the country into a productive mood.

A nation of debtors is a very weak and vulnerable nation.

[flashoflight]

May 23, 2022

.... It proposed increasing the exemption of debtors’ interests in motor vehicles from $1,000 to $5,000.

In a veto letter to Secretary of State Cord Byrd, DeSantis wrote the measure could incentivize people to seek bankruptcy protection.

“Although it may be time to consider increasing the outdated exemption amount, this increase should apply to all persons who can claim Florida exemptions, whether in or out of bankruptcy, so that people are not incentivized to file for bankruptcy, which has long-lasting, negative consequences for a person’s credit history,” DeSantis wrote.