What Assets Are Protected From Seizure?

Assets protected from seizure resulting from court judgments or bankruptcy vary from state to state. Assets that may be protected from court judgments are not protected if they are the collateral used for the loan. For example, although motor vehicles up to a certain amount may be protected, the vehicle may still be seized by the company making the loan if the borrower is in default.

Protected Assets

In most U.S. venues, assets protected from seizure due to judgment include the initial $2,300 worth of motor vehicles, 75 percent of wages, $6,075 of jewelry, and $6,075 of the debtor's tools of the trade, according to the University of California Student Legal Services. For those filing bankruptcy under Chapter 7 of the U.S. Bankruptcy Code, federal statute provides couples may exempt that up to $32,000 of their home equity, or $16,500 each.

Florida Protected Assets

Under Florida law, assets held in a child's name for college tuition are exempt from seizure. Employer-sponsored medical savings accounts are also exempt from bankruptcy seizure. All pensions, disability payments, retirement savings and government assistance payments are protected. Those receiving alimony, child support payments, worker's compensation and unemployment benefits will not have those benefits seized in case of bankruptcy. Perhaps the most important state exemption is the Florida Homestead Exemption. Under this law, properties under half an acre in urban sites and up to 160 acres in rural areas cannot be seized by creditors in bankruptcy. However, foreclosure laws still apply if proceedings are brought forward by the entity holding the mortgage. Municipal and county authorities may proceed with tax sales if property taxes are unpaid.

Texas Protected Assets

In the Lone Star state, homesteads are exempt from seizure unless the mortgage, home equity loan or property taxes have not been paid. Homeowners who fail to pay a contractor under a written contract for repairs or improvements to the homestead are ineligible for exemption. Urban homesteads include properties up to 10 acres, while rural homesteads are up to 100 acres for an individual or 200 acres for a couple. Personal property with a fair market value of up to $30,000 for an individual or $60,000 for a couple is also exempted, and such property includes clothes, motor vehicles, tools, equipment, furniture, pets and livestock.