Will I Lose My Home or Car if I File Bankruptcy in Florida?
One of the most common fears people have about filing bankruptcy is the possibility of losing everything—especially their home or vehicle. The good news? Florida has some of the strongest asset protection laws in the country.
Whether you’re filing Chapter 7 or Chapter 13, it’s often possible to keep your home, car, and other essential assets. In this guide, we’ll explain how Bankruptcy Exemptions in Florida work, when you might be at risk of losing property, and how bankruptcy can actually help you avoid foreclosure or repossession.
Understanding Bankruptcy Exemptions in Florida
Bankruptcy exemptions are laws that determine what property you can legally protect (or “exempt”) during a bankruptcy case. If an asset is exempt, it cannot be taken by the trustee to pay creditors.
In Florida, you are required to use state exemptions rather than federal ones, as long as you’ve lived in the state for at least 730 days before filing.
Florida’s Homestead Exemption
Florida’s homestead exemption is one of the most generous in the nation.
You can protect:
- An unlimited amount of equity in your primary residence
- On property that is no larger than half an acre in a municipality or 160 acres elsewhere
To qualify:
- The home must be your primary residence
- You must have owned it for at least 1,215 days before filing
If you meet these requirements, your home is generally safe from creditors in a Chapter 7 bankruptcy. Even if you’re behind on payments, filing may temporarily stop foreclosure through the automatic stay.
What If You’re Behind on Mortgage Payments?
Filing Chapter 7 may delay foreclosure, but it won’t allow you to catch up on missed payments. If your goal is to keep your home and stop foreclosure, Chapter 13 might be the better option.
Chapter 13 allows you to:
- Stop foreclosure immediately
- Catch up on missed mortgage payments over 3 to 5 years
- Protect your home as long as you make your plan payments on time
If your home is in danger, consult a bankruptcy attorney in Tampa immediately to explore both options.
What About My Car?
Florida allows you to protect up to $1,000 in vehicle equity under its motor vehicle exemption. If you’re filing as a single person and don’t claim a homestead exemption, you may also use an additional $4,000 wildcard exemption.
In Chapter 7:
- If exemptions fully cover your car’s equity, you can keep it
- If your car is still under a loan, you may be able to reaffirm the debt and keep making payments
- If you’re behind, the lender may still repossess it unless you catch up
In Chapter 13:
- You can keep your car while catching up on payments over time
- In some cases, you may even reduce the loan balance if your car is worth less than you owe
Other Commonly Protected Assets in Florida
In addition to your home and car, Florida exemptions protect:
- Personal property (up to $1,000, or $5,000 with a wildcard)
- Retirement accounts and pensions
- Life insurance cash value
- Wages (in some cases)
- Social Security and disability benefits
Your attorney will help apply the proper exemptions to your assets.
When Property May Be at Risk
In most consumer bankruptcy cases, filers do not lose their homes or cars. But some situations may put property at risk:
- High equity beyond the exemption limit
- Second homes or investment properties (not protected under homestead)
- Luxury vehicles with high resale value
- Recent property transfers, which the trustee can flag
If any of these apply to your situation, your attorney may recommend a Chapter 13 filing—or another strategy to protect your assets.
Bankruptcy Can Help You Keep Your Property—Not Lose It
One of the biggest myths about bankruptcy is that you’ll lose everything. In reality, bankruptcy is a legal tool designed to protect you and your property, not punish you.
By working with an experienced bankruptcy attorney in Tampa, you can:
- Stop foreclosure and repossession
- Use Florida’s exemptions to protect what you own
- Eliminate unsecured debt and regain control of your finances
Speak With a Bankruptcy Attorney in Tampa Bay
At the Debt Relief Law Offices of Tampa Bay, we’ve spent over 35 years helping clients keep their homes, cars, and dignity. If you’re worried about losing property due to debt or foreclosure, we’re here to guide you through your legal options.
Serving Tampa, New Port Richey, and surrounding areas
Request a confidential consultation to protect what matters most.
Ziona Kopelovich, Esq. is a Board-Certified Consumer Bankruptcy Attorney and founder of Debt Relief Law Offices of Tampa Bay. Since 1996, she has helped Floridians navigate Chapter 7 and Chapter 13 filings, lien stripping, foreclosure defense, and post-discharge credit rebuilding. Passionate about second chances, Ziona blends deep legal expertise with genuine compassion to guide clients toward brighter, debt-free futures.
