What Happens to Your Car and Home in a Florida Bankruptcy?

For many people considering bankruptcy in Florida, the biggest concern is what will happen to their car and home. These are not just assets — they are essential to daily life. Fortunately, Florida has some of the strongest property protections in the country, and depending on the type of bankruptcy you file, you may be able to keep both.

This guide explains how Florida bankruptcy laws affect your house and vehicle under Chapter 7 (liquidation) and Chapter 13 (repayment plan).

Your Home in a Florida Bankruptcy:

The Florida Homestead Exemption

Florida law provides one of the most generous homestead exemptions in the United States. This exemption protects the equity in your primary residence, regardless of its value, as long as you meet certain requirements.

• The property must be your primary residence.
• The lot size cannot exceed half an acre in a city or 160 acres in a rural area.
• You must have owned the property for at least 1,215 days (about 3.3 years) before filing to claim the full exemption.

This means that in most cases, your home will be safe when filing for bankruptcy in Florida.

Chapter 7 vs. Chapter 13 and Your Home

• Chapter 7 Bankruptcy: If you are behind on your mortgage, Chapter 7 may not stop foreclosure. However, if you are current on payments and your equity is protected under the homestead exemption, you can usually keep your home.
• Chapter 13 Bankruptcy: This option is often used by Florida residents who are behind on mortgage payments. It allows you to create a repayment plan that helps you catch up and avoid foreclosure.

Your Car in a Florida Bankruptcy:

The Florida Motor Vehicle Exemption

Florida allows you to protect up to $1,000 of equity in a vehicle. Married couples filing jointly may double this amount. If you do not claim the homestead exemption, you may also qualify for a $4,000 “wildcard” exemption that can be applied to your car or other property.

Chapter 7 vs. Chapter 13 and Your Car

• Chapter 7 Bankruptcy: If your car loan is current and your equity is within exemption limits, you can usually keep your vehicle. However, if you are behind on payments, the lender may still repossess it unless you reaffirm the loan or redeem the vehicle.
• Chapter 13 Bankruptcy: Filing Chapter 13 may allow you to catch up on missed car payments through your repayment plan. In some cases, you may even be able to reduce the loan balance or interest rate (called a “cramdown”) if certain conditions are met.

Protecting What Matters Most

Bankruptcy does not automatically mean losing everything you own. Florida’s exemptions are designed to help people maintain stability while they resolve overwhelming debt. Whether you are most concerned about your home, your car, or both, you have legal rights and protections.

Why Work With a Florida Bankruptcy Attorney

Every case is unique. Your income, the amount of equity in your assets, and the type of bankruptcy you choose all affect whether your home and car are protected. Navigating these rules can be challenging, which is why it’s important to have the right legal guidance.

At the Law Offices of Michael H. Johnson, P.A., we help individuals and families across Fort Lauderdale, West Palm Beach, and South Florida understand their options and protect what matters most. From stopping foreclosure to preventing repossession, our firm is here to guide you through the bankruptcy process.

Take Action Today

If you’re worried about losing your car or home during bankruptcy, take the first step toward clarity and relief.

Contact the Law Offices of Michael H. Johnson, P.A. today at 954-737-5800 to schedule a consultation. Serving clients in Fort Lauderdale, West Palm Beach, and surrounding communities, we are ready to help you move forward.

👉 Learn more at: www.attorneydebthelper.com