Quick Answer

Most people who file bankruptcy in Florida keep both their home and their car. Florida’s homestead exemption protects the equity in a primary residence with no dollar limit under state law, though federal rules can cap it for people who bought their home or moved to Florida recently. Florida protects up to $5,000 of equity in a vehicle, plus up to $4,000 more through the personal property exemption if you are not receiving the benefit of the homestead exemption. To keep a home or car with a loan, you still have to keep paying the lender, and Chapter 13 can help you catch up if you are behind.

Introduction: The Two Questions Almost Every Client Asks First

When people come to us about bankruptcy, the first questions are nearly always the same: Can I keep my house? Can I keep my car? These assets represent stability, getting to work, and keeping children in the same school. The fear of losing them keeps many people from getting help they need.

Florida offers some of the strongest property protections in the country. Whether you can keep your home and car if you file bankruptcy in Florida depends on how much equity you have, how long you have owned the home and lived in the state, whether you are current on your loans, and which chapter you file. This 2026 guide explains each of those factors.

Key Legal Considerations

Florida’s homestead exemption

Article X, Section 4 of the Florida Constitution protects your homestead from forced sale by most creditors. In bankruptcy, that means the trustee generally cannot sell your primary residence to pay unsecured debts like credit cards and medical bills. To qualify:

• The home must be your permanent residence, not a rental, second home, or vacation property.
• It must sit on no more than one-half acre inside a municipality, or 160 acres outside one.
• There is no dollar cap on equity under Florida law, but the federal limits below can apply.

The 730-day rule: whose exemptions apply

Under 11 U.S.C. 522(b)(3), you can use Florida’s exemptions only if Florida has been your domicile for the 730 days (two years) before filing. If you moved here more recently, the exemptions of the state where you lived for most of the 180 days before that two-year period generally apply instead. This rule surprises many recent arrivals.

The 1,215-day rule: a cap on newer homesteads

Under 11 U.S.C. 522(p), if you acquired your home within 1,215 days (about three years and four months) before filing, the homestead equity you can protect is capped at $214,000, the amount in effect since April 1, 2025. Equity transferred from a previous Florida homestead into the current one generally does not count against the cap. A separate rule in 11 U.S.C. 522(o) reduces the exemption if non-exempt assets were converted into home equity within 10 years with intent to hinder creditors.

The mortgage still has to be paid

The homestead exemption protects your equity, not your obligation to the lender. Bankruptcy can eliminate your personal liability on the loan, but the mortgage lien remains. If you stop paying, the lender can foreclose after the bankruptcy.

Married couples and tenancy by the entireties

Married couples in Florida who own their home as tenants by the entireties have an additional layer of protection when only one spouse files and the debts are in that spouse’s name alone. Entireties property generally cannot be reached by creditors of only one spouse. Joint debts are different, so the analysis depends on who owes what.

The vehicle exemption

Under Fla. Stat. 222.25(1), you can protect up to $5,000 of equity in one motor vehicle. That amount took effect July 1, 2024, replacing the old $1,000 limit. Equity means the car’s value minus what you owe. If spouses file together and own two cars, or co-own one car, each spouse can generally claim their own vehicle exemption.

The $4,000 personal property exemption

Fla. Stat. 222.25(4) adds a personal property exemption of up to $4,000 for a debtor who does not claim or receive the benefits of Florida’s homestead exemption. Renters and people who are surrendering a home often use it to protect extra car equity, bank balances, or other property. The Florida Supreme Court has read this provision in the bankruptcy context to look at whether the debtor is actually claiming the homestead exemption in the case.

Common Situations

You own your home, live in it, have lived in Florida for years, and are current on the mortgage

In most of these cases, you keep the home in either Chapter 7 or Chapter 13.

You bought your home or moved to Florida within the last few years

The 730-day and 1,215-day rules may limit your protection. Timing the filing date can make a large difference, so this is worth reviewing before you file.

You are behind on your mortgage

Chapter 7 temporarily stops a foreclosure through the automatic stay, but it does not cure the missed payments. Chapter 13 allows you to repay the arrears over three to five years while making regular payments, which is often the only way to save a home that is already in foreclosure.

Your car has more equity than the exemptions cover

In Chapter 7, the trustee may sell the car, pay you your exempt amount, and use the rest for creditors, or may let you buy back the non-exempt equity. In Chapter 13, you keep the car, but your plan must pay creditors at least the non-exempt value.

You owe more on your car than it is worth

The trustee will usually have no interest in the car. Your decision is whether to reaffirm the loan, redeem the car for its current value, or surrender it. Florida is in the Eleventh Circuit, which does not allow a debtor to simply keep paying without reaffirming or redeeming, so a lender can generally repossess if you do neither.

Strategic Considerations

Chapter 7 or Chapter 13

Chapter 7 is faster, usually about four months, and works well when your equity is fully exempt and you are current on your secured loans. Chapter 13 is better when you are behind on payments, have non-exempt equity you want to keep, have a co-signed loan you want to protect, or do not qualify for Chapter 7 under the means test. Chapter 13 can also reduce an older car loan, one taken out more than 910 days before filing, to the car’s value.

What an experienced attorney reviews before filing

• The deed and how title is held, including whether anyone else is on title.
• When you bought the home and when you moved to Florida.
• A realistic value for the home and car, and current payoff figures.
• Any transfers of property or money in the past several years.
• Whether you are current on your mortgage, car loan, and HOA or condo dues.

Homeowners’ and condo association dues

Association dues that come due after you file are not discharged and remain your responsibility for as long as you own the home. Falling behind after bankruptcy can lead to a lien and foreclosure by the association.

Common Mistakes

• Assuming the homestead exemption is unlimited when you bought the home or moved to Florida recently.
• Paying off a relative or transferring property shortly before filing.
• Signing a reaffirmation agreement without reviewing whether the loan is worth keeping.
• Believing Chapter 7 will save a home that is already behind on payments.
• Forgetting that a second home or rental property is not homestead.

Frequently Asked Questions

Will I lose my house if I file Chapter 7 in Florida?

Usually not, if it is your homestead, you meet the residency and timing rules, and you keep paying the mortgage.

How much car equity can I protect in Florida?

Up to $5,000 under the motor vehicle exemption, plus up to $4,000 more under the personal property exemption if you are not receiving the benefit of the homestead exemption.

Can I keep my house if I am behind on my mortgage?

Chapter 13 is designed for this. It allows you to repay the missed payments over time while keeping the home. Chapter 7 alone generally does not.

What if I bought my home less than three and a half years ago?

If you acquired it within 1,215 days of filing, your homestead equity is capped at $214,000 unless it came from a prior Florida homestead.

Do I have to reaffirm my car loan to keep my car?

In Florida, if you want certainty that the lender will not repossess, you generally must reaffirm or redeem. Reaffirming keeps you liable after bankruptcy, so it deserves careful thought.

Can I sell my home after bankruptcy?

Generally yes. If your homestead equity was fully exempt, the proceeds are yours once your exemption is final. The details are covered in our article on selling a home during or after Chapter 7.

When You Should Contact an Attorney

Speak with a bankruptcy attorney before filing if you are behind on your mortgage or car loan, bought your home or moved to Florida within the past few years, own property with someone else, have significant equity, or have transferred assets recently. These are the situations where planning makes the biggest difference.

Conclusion

For most Floridians, bankruptcy does not mean giving up the home or the car. The homestead exemption protects your residence, the vehicle and personal property exemptions protect most cars, and Chapter 13 offers a way to catch up on missed payments. The exceptions, especially the 730-day and 1,215-day rules, are where people get hurt, and they are exactly what a careful review before filing is designed to catch.

If you are considering bankruptcy and want to protect your home and car, Klein Law Group can evaluate your situation and recommend the right approach. Schedule a consultation at www.kleinattorneys.com or call our Boca Raton office.

This article provides general information about Florida and federal bankruptcy law and is not legal advice. Reading it does not create an attorney-client relationship.