Falling behind on car payments while struggling with debt can make an already stressful situation feel impossible. When a creditor threatens to take your vehicle, your ability to get to work, care for your family, and handle daily responsibilities is at risk. Filing for bankruptcy may give you the legal tools to protect your car and move forward with more stability.
If you are concerned about vehicle repossessions during bankruptcy in Boca Raton, speak with an attorney to help you understand your rights and available options. At Werner, Hoffman, Greig & Garcia, our team works closely with people facing serious financial hardship. We offer free initial consultations so you can get answers before making any decisions.
Florida law offers meaningful protections when it comes to keeping your vehicle during bankruptcy, and many Boca Raton residents have used these tools to prevent car repossession. Both Chapter 7 and Chapter 13 bankruptcy can address a vehicle repossession threat, though the best path forward depends on your financial situation and how current you are on your payments.
Chapter 7 bankruptcy may be an option if you are currently on your vehicle loan. As long as your car equity falls within Florida’s exemption limits, you may keep your vehicle by entering a reaffirmation agreement with the lender. This arrangement keeps the loan active and holds you personally responsible for the balance, but it also means the lender cannot take your car as long as payments continue.
Chapter 13 bankruptcy is often the stronger option if you have fallen behind on your car payments. Through a three- to five-year court-approved repayment plan, you can catch up on past-due payments and retain your vehicle. In some cases, if you financed the car more than 910 days before filing and owe more than its current market value, a cramdown may allow you to reduce the principal to the vehicle’s actual fair market value.
According to Florida Statute § 222.25(1), Florida law protects up to $5,000 in motor vehicle equity from creditors during bankruptcy. If your car’s equity falls within this threshold, a trustee generally cannot force a sale of your vehicle to satisfy unsecured debts.
Florida also provides additional protection. Under Fla. Stat. § 222.25(4), if you do not claim a homestead exemption, you may apply up to $4,000 of personal property protection toward your vehicle. For Boca Raton residents concerned about auto repossession during bankruptcy, this combined protection could be the deciding factor in keeping a car.
Our bankruptcy attorneys at Werner, Hoffman, Greig & Garcia evaluate your vehicle’s equity, identify all applicable exemptions, and help you determine the most effective strategy for protecting your assets.
Bankruptcy does not have to end with the loss of a car you depend on every day. Florida law gives you real options, and the right filing strategy could protect your vehicle while helping you address your broader financial situation. Our team understands how much is at stake and is ready to help you take action.
Do not wait until vehicle repossessions during bankruptcy in Boca Raton become a reality. Reach out to Werner, Hoffman, Greig & Garcia today to schedule your free initial consultation. We are ready to carefully review your situation and help you take the right steps before it is too late.
