Vehicles in Bankruptcy

Posted on August 3, 2009 by Jordan Bublick

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.

 

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Exempt Property in Florida Bankruptcy

Posted on August 3, 2009 by Jordan Bublick

The most typical exemptions used in a Florida bankruptcy case are the following: Florida homestead, $1,000.00 - $5,000.00 of personal property, $1,000.00 of equity in a vehicle, IRA, and other retirement benefits.

If all or most of the property one may be in a position to file for chapter 7 bankruptcy. This would depend on other considerations, including the amount of one's net disposable income.

If a person has substantial property that would not be exempt, he would consider filing for chapter 13. Under chapter 13, one is allowed to keep all of his property, whether exempt or non-exempt, in exchange for the payment to creditors under a chapter 13 plan over 3 to 5 years. The amount required to be paid in the chapter 13 plan depends on the amount of the non-exempt property and the amount of the projected disposable income.

 

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