Whether or not you can keep your car if you file for bankruptcy in Florida will depend on several factors, including the type of bankruptcy you file, the equity you have in your car, and your ability to continue making payments on your car loan.
In Florida, individuals who file for bankruptcy may be able to keep their car if they file for Chapter 7 bankruptcy or Chapter 13 bankruptcy. Here are some things to consider:
- Chapter 7 bankruptcy: If you file for Chapter 7 bankruptcy, you can potentially retain ownership of your car if you can exempt the equity in your car or if the value of your car is less than the allowed exemption. In Florida, individuals can exempt up to $1,000 of equity in their car or $2,000 if they are married and filing jointly. If the value of your car exceeds the exemption amount, the bankruptcy trustee may sell your car to pay your creditors.
- Chapter 13 bankruptcy: If you file for Chapter 13 bankruptcy, you can retain ownership of your car as long as you continue to make payments on your car loan. In Chapter 13 bankruptcy, you create a repayment plan to pay off your debts over a period of three to five years, and your car loan is included in the plan. You can keep your car as long as you continue to make your car payments.
It's important to note that if you are behind on your car payments and want to keep your car in bankruptcy, you will need to catch up on your payments.
In Chapter 7 bankruptcy, you may be able to reaffirm your car loan, which means you agree to continue making payments on your car loan, and the lender consents not to repossess your car as long as you make your payments.
In Chapter 13 bankruptcy, your car loan is included in your repayment plan, and you must make all payments under the plan to keep your car.
Contact Fleysher Law for an Initial Consultation with Our Bankruptcy Lawyer
Navigating bankruptcy and protecting your valuable properties, such as your car, requires expert guidance and an understanding of Florida's intricate bankruptcy laws. At Fleysher Law, we stand as your unwavering advocate, providing you with a clear path toward retaining ownership of your car throughout the bankruptcy process. Take charge of your financial future and secure your assets – reach out to our seasoned bankruptcy attorneys today.
Here's how Fleysher Law can help you keep your properties, including your car, during bankruptcy:
- Personalized Evaluation: Our adept attorneys will comprehensively assess your unique financial situation, considering factors like equity in your car and the type of bankruptcy you're filing for – Chapter 7 or Chapter 13.
- Maximizing Exemptions: In Chapter 7 bankruptcy, we will diligently work to maximize exemptions available to you, such as Florida's allowance of up to $1,000 (or $2,000 for married couples) in equity for your car. This will help you retain ownership and safeguard your vehicle from potential liquidation.
- Crafting a Sustainable Repayment Plan: If you opt for Chapter 13 bankruptcy, our skilled lawyers will collaborate with you to design a viable repayment plan that encompasses your car loan. By adhering to this plan and making consistent payments, you can retain possession of your car throughout the bankruptcy process.
- Protecting Against Repossession: If you are behind on car payments, our team will guide you on how to catch up and retain ownership during bankruptcy. In Chapter 7, we may explore the possibility of reaffirming your car loan, while in Chapter 13, your car loan will be securely included in the repayment plan.
- Expert Legal Advocacy: Throughout your bankruptcy journey, our experienced attorneys will provide unwavering legal advocacy and support, ensuring your rights are protected, and your best interests are safeguarded at every step.
The decision to file for bankruptcy carries great significance, and we understand the complexities and concerns it may entail. Rely on the expertise of Fleysher Law to navigate this process with precision and compassion.
Contact us today to schedule a consultation with our proficient bankruptcy attorneys and explore the best strategies to keep your car and secure a brighter financial future.
