Florida Restaurant MCA Debt Help: Homestead Protection, Wage Exemptions, and UEFJA Rights

Florida's Constitutional Homestead Exemption

The Florida homestead exemption is written directly into the Florida Constitution — Article X, Section 4. This makes it unusually powerful: it cannot be changed by the legislature without a constitutional amendment, and it cannot be waived by contract in most circumstances.

The protection: your Florida primary residence cannot be forced to be sold to satisfy most judgment debts, regardless of how much the property is worth or how much equity you have. There is no dollar cap. A modest $200,000 home and a $3,000,000 waterfront property receive identical protection.

The size limits for the exemption:

• Within a municipality: 0.5 acres (approximately 21,780 square feet)
• Outside a municipality: 160 contiguous acres

For virtually every Florida restaurant owner, these limits are not a practical constraint. Your primary residence — whether a single-family home, condo, or townhouse — is protected.

What the Florida homestead exemption does NOT protect:

• Investment properties or second homes
• Commercial real estate
• A primary residence that was purchased with funds fraudulently transferred from creditors (under the Florida Uniform Fraudulent Transfer Act)
• Property on which the lender holds a mortgage lien (the lender can still foreclose on the mortgage, just not on the homestead exemption)

The Florida UEFJA Process: Your 30-Day Window

When a New York MCA lender wants to enforce a COJ judgment in Florida, they must follow the Florida Uniform Enforcement of Foreign Judgments Act (F.S. § 55.501–55.509). This process:

• The lender's Florida attorney files an authenticated copy of the New York judgment with the clerk of a Florida circuit court.
• The attorney files an affidavit stating the name and last known address of the judgment debtor (you).
• The clerk files the judgment as a Florida judgment.
• The lender must mail notice to you at your last known address within 3 business days of filing.
• You have 30 days from the date of mailing of notice to file a motion to vacate, stay, or modify the judgment.

The 30-day contest window is your most important immediate protection. If you receive UEFJA notice from a Florida court — a legal document in the mail or via process server — you must act within 30 days. Do not ignore it. Even if you cannot ultimately defeat the judgment, contesting it forces the lender to respond and creates delay that gives you time to negotiate a settlement.

Call (919) 907-2611 immediately if you receive a UEFJA notice. A professional mediator can help you assess whether to contest and negotiate simultaneously.

Grounds for Contesting a New York COJ in Florida

Florida courts will consider motions to vacate a registered foreign judgment on the following grounds:

• Lack of personal jurisdiction. If the New York court did not have proper jurisdiction over you personally, the judgment may be void. For a COJ, personal jurisdiction typically arises from the contract itself — but the method of service or the contract's jurisdictional provisions can be challenged.
• Fraud in obtaining the judgment. If the COJ was obtained through misrepresentation or fraudulent conduct by the lender.
• Violation of Florida public policy. If enforcing the judgment would violate Florida's public policy. Florida courts have not definitively ruled on whether New York COJ judgments obtained without notice violate Florida's fundamental public policy, but the argument has been made with some success in other states.
• Judgment already satisfied. If you have already paid the judgment or it was otherwise discharged.
• Lack of due process in the original proceeding. A COJ entered without any notice to the defendant in the original New York proceeding has been challenged on federal due process grounds.

Contesting a UEFJA registration requires a Florida attorney. The 30-day window is strict — missing it generally means the judgment is registered and enforceable without further delay.

Florida Head-of-Household Wage Exemption

Florida Statutes § 222.11 provides wage garnishment protection for heads of household — persons who are providing more than half of the financial support for a dependent (child, spouse, parent, sibling, or other dependent).

If you qualify as a head of household:

• Your disposable earnings of $750 per week or less are completely exempt from garnishment.
• If you earn more than $750 per week in disposable earnings (gross pay minus mandatory deductions), the amount above $750 per week may be subject to garnishment up to the federal limit of 25%.
• The exemption can be waived in writing — but this must be an explicit, voluntary written waiver, not a contractual provision buried in a commercial contract. MCA contract clauses purporting to waive this exemption may not be enforceable under Florida law.

If you are not a head of household, Florida provides less wage protection, but the federal Consumer Credit Protection Act still limits garnishment to 25% of disposable earnings.

What MCA Lenders Can Still Pursue in Florida

Florida's protections are strong but not complete. What creditors can still reach:

• Business bank accounts. Once a UEFJA judgment is registered and the 30-day window passes, a judgment creditor can serve a writ of garnishment on Florida business bank accounts.
• Business assets. Inventory, equipment, receivables, and other business assets can be reached through a judgment lien.
• Non-homestead real estate. Investment properties, commercial properties, and second homes are not protected by the homestead exemption.
• Personal bank accounts. Once a judgment is domesticated, personal bank accounts can be restrained — subject to any exemptions for wages or protected funds.
• Wages above the head-of-household threshold. Disposable earnings above $750 per week (if you are a head of household) or 25% of all disposable earnings (if you are not) can be garnished.

Florida Restaurant Owner MCA Action Plan

• Step 1: Check for any New York COJ filed against your business (iapps.courts.state.ny.us).
• Step 2: Search Florida UCC filings at search.sunbiz.org for active liens against your business.
• Step 3: If you receive UEFJA notice, contact a professional mediator and a Florida commercial attorney within 24 hours — the 30-day clock is running.
• Step 4: Engage professional MCA mediation before enforcement begins. The UEFJA timeline gives Florida restaurant owners more time to negotiate than most other states, but it is not unlimited.

Call (919) 907-2611 for a free assessment of your Florida MCA situation.

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Related MCA Guides

• MCA Personal Guarantee: Florida's Homestead and Other Protections
• When You Need a Florida MCA Attorney
• Restaurant MCA Debt Relief: The Complete Guide
• MCA Settlement: How to Negotiate Before Enforcement Begins
• MCA Bank Account Frozen: Emergency Response Guide

Frequently Asked Questions — Florida