Can I Keep My House and Car If I File Bankruptcy in Florida?
- 4 hours ago
- 2 min read
One of the biggest fears people have when considering bankruptcy is losing their home or vehicle.
The good news? In many cases, you can keep them both. In Florida, bankruptcy offers two main paths:
Chapter 7 vs Chapter 13
For some individuals, pursuing a financial reset through bankruptcy can be advisable. Keep in mind that poverty is a temporary state and doesn't define one's identity, and the bankruptcy process might be a viable option. Bankruptcy is a component of the U.S. judicial system and serves as a debt relief mechanism. Whether it's suitable for you depends on your unique situation and timing.
If you have previously declared bankruptcy, you may not yet qualify to file again. Furthermore, if you expect to accumulate more debt, it might be prudent to delay filing so that all your debt is included in the bankruptcy.
Chapter 7 Bankruptcy
Chapter 7 is a fast (4–6 months) "liquidation" bankruptcy that eliminates unsecured debt but may require selling assets. You may be able to keep your home and car if your equity is below Florida’s exemption limits.
Best For: Individuals with low income and few assets.
Process: A trustee may sell non-exempt property to pay creditors.
Time: Quick, typically 4-6 months.
Credit Impact: Remains on credit report for up to 10 years.
Requirements: Must pass the "means test" to show income is low enough
Chapter 13 Bankruptcy
Chapter 13 is a slower (3–5 years) "reorganization" that allows filers with regular income to keep assets (like a home facing foreclosure) while repaying debt through a structured plan. Chapter 13 allows you to catch up on missed mortgage or car payments while getting rid of other debts. This is often the best option if you want to keep your house or car.
Best For: Individuals with regular income, significant assets (house/car), or those who don't pass the means test.
Process: Allows you to keep property and repay debts (partially or fully) through a 3–5 year plan.
Time: Longer, lasting 3-5 years.
Credit Impact: Remains on credit report for up to 7 years.
Key Advantage: Can stop home foreclosure and restructure debts.
At McMann, PA we review your specific situation and help you choose the path that protects what matters most to you and your family. Call (863) 393-9010 today for a free consultation. We’ll tell you honestly whether you can keep your home and car and create a plan that works best for you.
Mark D. McMann
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