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A creditor can take your personal assets for a business debt only after it holds a judgment against you personally, and even then only the property Florida law leaves unprotected. Owning the company is not enough. Signing a personal guaranty usually makes you liable, but the creditor still needs a judgment against you. This guide maps what a creditor can reach, asset by asset, and what you must do to keep the rest.
If no judgment has been entered yet, start with our guide on what your options are when you are sued personally for a business debt.
When Can a Business Creditor Reach My Personal Assets?
Only when you are personally liable and the creditor has a judgment against you individually. A judgment against your company alone is enforced against the company’s property, not yours. The usual routes to personal liability are a personal guaranty, signing a contract in your own name, or a successful claim that the company was your alter ego.
Each route has defenses:
- A personal guaranty. See our personal guarantors page.
- How you signed. Read why the body of a contract can trump the signature line.
- Veil piercing. Our post on piercing the corporate veil in Florida explains the test.
Which Personal Assets Can a Creditor Take?
Anything Florida law does not exempt. A judgment creditor can levy on real estate, goods, and corporate stock, garnish money that third parties hold for you, and record liens. What survives depends on the type of asset, how it is titled, and whether you claim the exemption on time.
| Asset | Can the creditor reach it? | What protects it |
|---|---|---|
| Your homestead | Generally no, within the acreage limits | Florida Constitution |
| Rental or vacation real estate | Yes | No exemption; a recorded judgment becomes a lien |
| Bank accounts in your name | Yes, except exempt funds | A timely claim of exemption |
| Accounts held with your spouse as tenants by the entirety | Generally no, if only you owe the debt | How the account is titled |
| Wages | Limited | Head of family exemption |
| One motor vehicle | Only above $5,000 of value | Statutory exemption |
| Other personal property | Only above $4,000, if you claim no homestead | Statutory exemption |
| Retirement accounts | Generally no | Statutory exemption |
| Life insurance cash value and annuities | Generally no | Statutory exemption |
| Your LLC interest | Through a charging order | Florida LLC Act |
| Stock in a corporation | Yes | No charging order limit; it can be levied and sold |
Can a Creditor Take My House?
Generally not, if it is your homestead. The Florida Constitution protects a natural person’s homestead from forced sale, up to one-half acre inside a municipality and 160 acres outside one. A debt on a business guaranty is not among the exceptions, which cover taxes and assessments, debts to buy, improve, or repair the home, and labor performed on it.
Our overview of Florida’s homestead exemption walks through the requirements. Renting out the property can put the protection at risk, as we explain in how renting homestead property can destroy the exemption.
Other real estate is different. Once a certified copy of the judgment, showing the creditor’s address, is recorded in the county where a rental or second home sits, the judgment becomes a lien on it.
Can a Creditor Empty My Bank Account?
A creditor can garnish an account in your name, but not the exempt money in it. When the debtor is an individual, the creditor must mail you a claim of exemption form, and you generally have 20 days after receiving it to file. The rules are in section 77.041, Florida Statutes.
Check two kinds of money first:
- Entireties accounts. An account you own with your spouse as tenants by the entirety generally cannot be garnished for a debt only you owe. See our post on garnishment of bank accounts in Florida.
- Deposited wages. A head of family’s exempt earnings deposited in a bank stay exempt for six months after they are received, if they can be traced as earnings.
Can a Creditor Garnish My Paycheck?
Only in part, if you are a head of family. Under section 222.11, Florida Statutes, disposable earnings of $750 a week or less are fully exempt. Earnings above $750 a week are garnishable only if you signed a written waiver that meets the statute’s strict form requirements. Check your loan and guaranty papers for one.
A head of family provides more than half the support for a child or other dependent. Our post on the head of household wage garnishment exemption covers who qualifies. If you pay yourself through a company you control, read when head of household exemptions may not apply.
Can a Creditor Take My Car and Personal Belongings?
Only the value above what the statutes protect. Under section 222.25, Florida Statutes, your interest in one motor vehicle is exempt up to $5,000 in value. If you do not claim or receive a homestead exemption, another $4,000 of personal property is also exempt.
The creditor reaches these items through a sheriff’s levy, which we describe in executing and levying on a debtor’s personal property. After a levy, section 222.061, Florida Statutes gives you 15 days after the levy to make an inventory, with a supporting affidavit, designating the items you claim as exempt. You then file it, serve the creditor, and give a copy to the sheriff. If the creditor does not object within 5 days after service, the inventory is deemed admitted.
Are My Retirement Accounts and Life Insurance Safe?
Generally, yes. Florida law exempts qualified retirement accounts, such as 401(k)s and IRAs, subject to narrow exceptions for a qualified domestic relations order and a surviving spouse’s elective share. The cash surrender value of a life insurance policy and the proceeds of an annuity are also generally exempt, unless the policy or contract was obtained for that creditor’s benefit.
Can a Creditor Take My Ownership in My Company?
It depends on the entity. For an LLC, section 605.0503, Florida Statutes makes a charging order the exclusive remedy, with exceptions the statute lists. A charging order diverts your distributions to the creditor but does not hand it control of the company.
- Single-member LLC. A court may order the interest sold if distributions will not satisfy the judgment within a reasonable time. The buyer takes the entire interest and becomes the member.
- Multi-member LLC. Foreclosure on your interest is barred.
- Corporation. Stock in a corporation can be levied on and sold under execution, with no charging order limit.
The charging order rule limits how your personal creditors reach your ownership interest, though it does not block fraudulent transfer or alter ego claims. It does not shield the company’s own assets from a judgment against the company.
Are My Exemptions Automatic?
No. Most exemptions protect you only if you assert them, in the right form, within short deadlines. A garnishment claim of exemption is generally due 20 days after you receive the notice. A levy inventory must be made within 15 days after the levy.
A short checklist:
- Calendar every notice the day it arrives.
- Gather proof of how each account and asset is titled.
- Trace deposits of exempt wages into your bank accounts.
What Will the Creditor Learn About My Assets?
Expect detailed questions. At the creditor’s request, the court must order you to complete a fact information sheet within 45 days or another reasonable time the court sets. Answer it accurately and completely, because the creditor can follow up with further post-judgment discovery.
Our guide on how to collect a judgment in Florida shows how creditors use proceedings supplementary to find and reach assets. Florida’s Second District has allowed creditors to take discovery about assets held jointly with a spouse.
Can I Move Assets Out of My Name Before the Creditor Collects?
Not without advice. Florida’s fraudulent transfer statute lists being sued or threatened with suit before a transfer as one factor a court may weigh in finding intent to hinder, delay, or defraud a creditor. A transfer made to dodge a judgment can be undone and can add a second claim against you.
Separately, if you held title to, or paid for, personal property within one year before you were served in the original case, and a spouse, relative, or close confidant now claims it, you must prove the transfer was not made to delay, hinder, or defraud creditors. Talk to counsel about avoiding fraudulent transfers before you retitle anything. Our article on how to protect your business when facing a civil lawsuit covers which moves remain available.
How Jimerson Birr Helps Owners Protect Personal Assets
Our lawsuit defense attorneys represent business owners facing collection on a guaranty or other personal judgment. We start with what you signed, what the judgment actually reaches, and which exemption deadlines are running. From there, we can help you claim your exemptions, negotiate a resolution, or evaluate options with our bankruptcy and restructuring team.