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 up to $1,000 of equity in one motor vehicle per filer. A married couple filing together can protect $2,000 in a jointly owned car.

That sounds small, but two things stretch it much further. First, equity is the car’s value minus what you still owe. A $15,000 car with a $14,500 loan balance has only $500 of equity — fully protected. Second, if you do not use Florida’s homestead exemption (typically because you rent or aren’t protecting home equity), §222.25(4) gives you a $4,000 wildcard exemption for any personal property, and most filers apply it to their car. That’s up to $5,000 of protected vehicle equity per filer — $10,000 for a couple filing jointly without a homestead claim.

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 often 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 — 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 is where an experienced attorney earns their fee: claiming the wrong exemptions, or missing the wildcard, is one of the most common and costly mistakes in do-it-yourself filings.

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 here routinely scrutinize 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 over 35 years — from Kendall to Hialeah to Cutler Bay — and can tell you in one consultation whether your car is fully protected. If you’ve been searching for a bankruptcy attorney near me who can protect your vehicle, we’re ready to help.

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