Can I Keep My Car If I File for Chapter 7 Bankruptcy in Florida?
Can I Keep My Car If I File for Chapter 7 Bankruptcy in Florida?
Filing for Chapter 7 bankruptcy in Florida can provide relief from overwhelming debt, but many people worry about what will happen to their assets—especially their vehicle. Losing a car can make it difficult to work and manage daily responsibilities. Fortunately, Florida law provides exemptions that may allow you to keep your car while eliminating eligible debts.
Florida’s Motor Vehicle Exemption
Florida law allows bankruptcy filers to exempt up to $1,000 of equity in a vehicle. If you do not claim a homestead exemption, you may use the wildcard exemption of up to $4,000, which can be applied to your car or other property.
How Equity Affects Your Car in Bankruptcy
The amount of equity in your car—its market value minus any outstanding loan—determines whether it is at risk. If your car’s equity is below the exemption limit, you can typically keep it. However, if the equity exceeds the limit, the bankruptcy trustee may sell the vehicle to pay creditors.
What If You Still Owe Money on Your Car Loan?
If you are financing your car, you have a few options:
- Reaffirm the loan: This means you agree to continue making payments and keep the car.
- Redeem the vehicle: You pay a lump sum equal to the car’s market value to keep it.
- Surrender the vehicle: If keeping the car is not financially viable, you can return it and discharge the remaining loan balance.
Steps to Protect Your Car in Chapter 7 Bankruptcy
- Determine your vehicle’s equity: Check its market value and subtract any remaining loan balance.
- Review available exemptions: Florida’s motor vehicle and wildcard exemptions may help.
- Consult a bankruptcy attorney: An attorney can help you maximize exemptions and determine the best approach for your case.
At Mann Law, we assist Melbourne, Florida, residents with Chapter 7 bankruptcy and asset protection. If you are considering filing and want to understand your options for keeping your car, we are here to help.


