For many individuals in Miami-Dade County, a car is essential for work, family responsibilities, and daily life. If you are considering filing for Chapter 7 bankruptcy, you may be wondering whether you can keep your vehicle. The answer depends on several factors, including Florida’s exemption laws, the status of your car loan, and the amount of equity in your vehicle.

Florida’s Vehicle Exemption in Chapter 7 Bankruptcy



Florida bankruptcy law allows filers to protect certain assets through exemptions. The state provides a motor vehicle exemption of up to $1,000 in equity. If you do not claim a homestead exemption, you may be eligible for an additional $4,000 wildcard exemption, which can be applied toward your car.

If your car’s equity falls within these exemption limits, you can typically keep your vehicle. However, if the equity exceeds the exemption amount, the bankruptcy trustee may sell the car and distribute the non-exempt portion to creditors.

What If You Have a Car Loan?

If you are still making payments on your car loan, you will need to decide whether to:

1. Reaffirm the loan – This means you agree to continue making payments and keep the car.
2. Redeem the vehicle – You may pay the current fair market value of the car in a lump sum to keep it.
3. Surrender the vehicle – If keeping up with payments is not feasible, you may voluntarily give up the car to eliminate the debt.

Protecting Your Vehicle with Legal Assistance

Every bankruptcy case is unique, and there are strategies to help protect your car while obtaining debt relief. At Bankruptcy Lawyers Miami, we assist Miami-Dade County residents in navigating the Chapter 7 process and determining the best course of action for keeping essential assets like their vehicles. If you are concerned about losing your car in bankruptcy, consulting with a bankruptcy attorney can help you explore all available options.