How Florida’s Updated Motor Vehicle Exemption Benefits Bankruptcy Filers In Orange County

In this article, you will discover:

• The current amount of Florida’s Motor Vehicle Exemption. 
• How the Florida Motor Vehicle Exemption works.
• What to do if you are concerned about losing one of your vehicles during bankruptcy.

What Changes Have Been Made To Florida’s Motor Vehicle Exemption?

As of July 1st, 2024, the exemption for a personal motor vehicle in light of bankruptcy is $5,000. This is a significant increase from the previous exemption amount of $1,000 and can help you hold on to a single vehicle whose value is $5,000 or less. 

If you have more than one vehicle and their total combined equity is $5,000, one of those vehicles will most likely not be able to be exempted and you might have to pay to keep the vehicle. This increase in the exemption amount can save you considerable amounts of money when filing and can help protect your primary vehicle, making day-to-day life far easier during and after filing for bankruptcy. 

Who Qualifies For The Motor Vehicle Exemption?

If you are a resident of Florida, you will generally qualify to use this exemption. However, if you have moved to the state recently, you may have to file under exemptions applicable in your former state. This could work out to your advantage, however, as many states have higher and more favorable vehicle exemption rates than Florida. 

Attorney Alec Solomita is an experienced Florida bankruptcy lawyer who has helped countless clients just like you navigate the intricacies of bankruptcy law. With over 16 years of experience, he is prepared to help you properly leverage the Florida Motor Vehicle Exemption to your advantage in your bankruptcy filing.

Still have questions? Ready to get started? Contact Solomita Law today to schedule an initial consultation.

Can The Exemption Be Applied To Work Trucks Or Other Business Vehicles?

If you have your own business and own the company truck, you can apply the motor vehicle exemption to that vehicle. As long as your name is on the vehicle and you have an ownership interest in it, you can use the exemption for this asset. 

What Happens If My Vehicle’s Equity Exceeds The Exemption Limit?

If your vehicle is valued at more than $5,000, you will have to pay the courts the difference to be able to keep it. For example, if your vehicle is valued at $7,500, you will owe the court $2,500 to hold on to that vehicle. Most of the time, the trustee of your case will be able to devise a repayment plan to help you make that payment. 

What Advice Do You Give Clients Who Have Multiple Vehicles And Are Concerned About Losing One During Bankruptcy?

While you and your attorney can make a request for the exemption to apply to more than one vehicle, if the trustee of your bankruptcy case objects, you will have to pay to keep that vehicle. It may also be possible to hold on to a second vehicle by applying a “wild card” exemption to it.

Whether this is a worthwhile risk to take is a conversation to have with your attorney. While it may be possible to hold onto multiple vehicles while filing for bankruptcy, you should ultimately be prepared to let one of those vehicles go. 

Still Have Questions? Ready To Get Started?

For more information on How Florida’s Updated Motor Vehicle Exemption Benefits Bankruptcy Filers In Orange County, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (407) 305-5599 today.