Vehicles in Bankruptcy
A vehicle is exempt in Florida to the extent of $1,000 plus the balance of one's unused $1,000 - $5,000 personal property exemption.
As most people are "upside down" on their vehicle and have little or no equity, most people are able to fully exempt their vehicle.
If a person has substantial equity in his vehicle that will not be exempt, he may consider filing for chapter 13 reorganization bankruptcy where one keeps all property in exchange for making a certain monthly payment plan over 3 to 5 years to pay a dividend to unsecured creditors.
One is usually able to keep a leased vehicle by just continuing to make the payments.
