If your car is about to be repossessed or has already been taken, bankruptcy may stop the process or get your vehicle back. Here is how it works for Miami residents.
Filing triggers the automatic stay which prevents the lender from taking your vehicle.
If repossessed but not yet sold, filing can force the lender to return the vehicle. Act quickly -- most sell within 10-15 days.
| Option | How It Works | Best For |
|---|---|---|
| Ch. 13 + Recovery | File before sale; car returned. Cure payments over 3-5 years. | Need the car; can make future payments |
| Ch. 7 + Discharge | Let the car go; discharge the deficiency | Do not need this specific car |
| Redeem | Pay current value in lump sum (section 722) | Car worth much less than owed |
| Reaffirm | Sign new agreement to keep paying original loan | Current on payments; want to keep car |
When a repossessed vehicle sells for less than owed, the difference is a deficiency. For example, if you owed $15,000 and the car sold for $9,000, the deficiency is $6,000.
In Florida, lenders can sue for the deficiency. Bankruptcy can discharge this entirely in both Chapter 7 and Chapter 13.
Yes. In Florida, a creditor can repossess without a court order once you default. They cannot breach the peace.
Yes. The automatic stay prevents repossession. Any attempt after filing violates federal law under 11 U.S.C. section 362(k).
If you file before the vehicle is sold, the automatic stay can force return. Time is critical -- most lenders sell quickly.
If the car sells for less than you owe, the remaining balance is a deficiency. In Florida, lenders can sue for this. Bankruptcy can discharge it entirely.
Chapter 13 stops repossession, lets you cure missed payments over 3-5 years, and may allow cramdown if the car was purchased 910+ days before filing.
Florida provides a vehicle exemption of $1,000 per person under Fla. Stat. section 222.25(1).
Use the free 1328(f) screener to check whether a prior discharge affects your eligibility for a new bankruptcy discharge.
Free Discharge Screener Means Test Guide