Can Surplus Funds Be Garnished or Seized by Creditors in Florida?
Can Surplus Funds Be Garnished or Seized by Creditors in Florida?
If you're entitled to surplus funds after a foreclosure or tax deed sale in Florida, you may be asking:
“Can creditors take my surplus funds before I get them?”
“What if I owe child support or have an IRS lien?”
The truth is: yes, surplus funds can sometimes be intercepted or reduced by creditors, depending on your financial and legal circumstances. In this article, we’ll explain when that happens, who can take the money, and how Florida law handles surplus fund claims involving judgments or debts.
What Are Surplus Funds?
Surplus funds are the remaining proceeds from a foreclosure or tax deed auction after all debts tied directly to the property (like a mortgage or tax bill) have been paid off.
If the home sells for more than what’s owed, that extra money — the surplus — is usually held by the Clerk of Court or Tax Deed Division until someone files a proper claim.
Can Surplus Funds Be Taken by Creditors?
Yes, under certain conditions. Here's a breakdown:
1. Judgment Creditors (e.g., Lawsuits, Credit Cards, Medical Bills)
If a creditor has a recorded judgment lien against you in Florida, they may have a legal right to file a claim on the surplus funds.
The court will decide how to distribute the money based on:
Lien priority (who filed first)
The validity of the judgment
Whether you or your attorney object to the claim
2. Child Support Obligations
Florida courts take child support enforcement seriously.
If you owe past-due child support, the Department of Revenue or the custodial parent can:
File a claim on the surplus funds
Present proof of the court order and amount owed
Potentially intercept all or part of the surplus before it's released to you
3. IRS Liens and Federal Debt
The IRS can also claim surplus funds if you owe back taxes and they have filed a federal tax lien. These liens are usually recorded in the public records — and like any creditor, the IRS must file a valid claim with supporting documentation.
4. Bankruptcy Proceedings
If you're in an active bankruptcy, surplus funds may be considered part of your estate and could be seized or redirected based on your bankruptcy chapter, trustee decisions, or repayment plan.
When Creditors Cannot Take Your Surplus Funds
There are also protections:
Unsecured creditors without a judgment lien cannot automatically claim surplus funds.
If you are the sole claimant and no creditor files, the funds are generally yours.
Some homestead protections may apply in rare cases, though not typically post-sale.
How Florida Courts Decide Who Gets What
If multiple claims are filed (you + creditors), the court may:
Hold a surplus hearing to determine proper disbursement
Review priority based on lien date and documentation
Require evidence from each party before issuing a final order
In some cases, judges may split the funds proportionally, or deny creditor claims if they’re improperly filed or expired.
Can You Challenge Creditor Claims on Surplus Funds?
Yes — and you should.
As a homeowner or heir, you can:
File an objection to a creditor’s claim
Request a hearing to present your side
Use legal defenses (such as expired judgments or lack of proper filing)
What You Should Do If You’re Worried About Creditors
Don’t delay your claim — waiting may give creditors more time to file
Work with a surplus recovery professional or attorney to assess risk
Review your credit report and public records to check for liens
At Visionary Surplus Recovery, we review your situation before filing to:
Flag possible creditor issues
Prepare appropriate responses or objections
Partner with attorneys to represent you in any hearings
Take Control of Your Surplus Funds — Before Someone Else Does
If you’re entitled to surplus funds but have debt concerns, don’t assume you’ve lost your chance. With the right help, many creditors can be challenged, reduced, or blocked entirely.
👉 Request a Free Case Review
📞 Or call us now at 813(934)-4146
Disclaimer: This post is for general informational purposes only and does not constitute legal advice. For personalized legal support, consult a licensed Florida attorney.
