Can I Keep My Car in Chapter 7 in Florida?

How Florida’s Vehicle Exemption Works

When you file Chapter 7, a trustee can sell non-exempt property to pay creditors, but only the equity you own actually counts. Florida Statute §222.25(1) exempts a debtor’s interest in a single motor vehicle up to $5,000 in value (the limit was raised from $1,000 in 2024, ch. 2024-110). In a joint case, each spouse claims his or her own exemption, so a married couple who both own the car can generally protect up to $10,000 of equity in it.

Two things stretch the exemption further. First, equity is the car’s value minus what you still owe. A $15,000 car with a $12,000 loan balance has only $3,000 of equity, which is fully protected. Second, if you do not claim or receive the benefit of Florida’s homestead exemption (typically because you rent), §222.25(4) gives you a $4,000 wildcard exemption for any personal property, which can be applied to car equity above the vehicle limit. That’s up to $9,000 of protected vehicle equity per filer without a homestead claim. The wildcard does not apply to a debt owed for child support or spousal support.

If Your Car Is Paid Off

A paid-off car is safe as long as its value falls within your available exemptions. If the equity exceeds them, the trustee could sell the car and give you the exemption amount in cash, but in practice, trustees may accept a negotiated payment for the non-exempt portion instead, letting you keep the vehicle. An attorney can value the car properly (using actual condition and mileage, not sticker price) so you don’t overstate your equity.

If You’re Still Making Payments

Car loans survive Chapter 7 because the lender holds a lien on the vehicle. You have three main options, declared on the Statement of Intention you file with the court:

Reaffirm the loan. You sign a new agreement keeping the debt out of your discharge and continue paying as before. The lender can’t repossess as long as you stay current, and your on-time payments keep building credit.

Redeem the vehicle. You pay the lender the car’s current replacement value in a single lump sum, which is useful when you owe far more than the car is worth, because the rest of the loan is discharged.

Surrender it. Give the car back and walk away owing nothing, then buy something more affordable after your discharge.

Some lenders also allow a “ride-through”, keeping the car by simply staying current without reaffirming, but they aren’t required to, so this should be discussed with your attorney before relying on it.

What It Costs

The court filing fee for Chapter 7 is $338 (fee waivers are available below 150% of the federal poverty guidelines). Exemption planning matters: claiming the wrong exemptions, or missing the wildcard, can be a costly mistake in a do-it-yourself filing.

Keeping Your Car in a Miami-Dade Chapter 7

Miami-Dade Chapter 7 cases are filed in the U.S. Bankruptcy Court for the Southern District of Florida, which sits at the C. Clyde Atkins U.S. Courthouse in downtown Miami. Trustees review vehicle values, so a realistic, well-documented valuation matters. Arturo R. Alfonso P.A. has guided Miami families through bankruptcy in English and Spanish for 30 years, from Kendall to Hialeah to Cutler Bay, and can review your vehicle, loan and exemptions with you in a consultation.

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