Some people would say that standardized laws regarding bankruptcy exemptions and other rules would be helpful and make the bankruptcy process easier for Florida residents as well as people across the country. If someone moves to another state where bankruptcy law is different, it can cause confusion and even remove the option for people who would benefit from bankruptcy relief. Even judges within the circuit courts can interpret the laws differently.
Recently an appeals court said that inherited IRA accounts weren’t exempt in bankruptcy. According to a decision of three federal appeals judges, a woman who had inherited $300,000 from her late mother’s IRA won’t be able protect the funds from creditors. The woman and her husband had disputed the IRA’s bankruptcy exemption with the trustee in charge of administering her bankruptcy estate.