If you’re considering filing for Chapter 7 bankruptcy in Central Florida, one of your biggest concerns is likely this: Will I lose my home or my car?

The good news is that, in many cases, you can keep both. Florida’s bankruptcy laws offer protections that allow individuals to eliminate overwhelming debt while holding onto essential assets. Understanding how these protections work—and getting the right legal guidance—can make all the difference in your financial future.

At The Law Office of John A. Russo, P.A., individuals across Central Florida have trusted Attorney John A. Russo for nearly two decades to help them navigate bankruptcy and protect what matters most.

Understanding Chapter 7 Bankruptcy in Florida

Chapter 7 bankruptcy is often referred to as a “fresh start” bankruptcy. It allows you to discharge many unsecured debts, including:

• Credit card balances
• Medical bills
• Payday loans
• Personal loans
• Deficiency balances from repossessions

Once your case is filed, an automatic stay goes into effect. This immediately stops:

• Wage garnishments
• Lawsuits
• Bank levies
• Creditor harassment

While this relief is powerful, many people worry about losing their property in the process. That’s where Florida’s exemption laws come into play.

Can You Keep Your Home in a Chapter 7 Bankruptcy?

Florida’s Homestead Exemption

Florida offers one of the most generous homestead protections in the country. If you qualify, you may be able to protect the full value of your primary residence, regardless of its worth.

To qualify for the homestead exemption:

• The property must be your primary residence
• You must meet certain residency requirements
• The home must fall within size limits (depending on location)

What About Your Mortgage?

Keeping your home also depends on your mortgage status:

• Current on payments: You can typically keep your home
• Behind on payments: The lender may still pursue foreclosure

Even if you’re behind, filing Chapter 7 can buy you time and may open the door to negotiating with your lender.

At The Law Office of John A. Russo, P.A., clients receive clear guidance on how to protect their homes and understand their options before filing.

Can You Keep Your Car in a Chapter 7 Bankruptcy?

Florida Vehicle Exemption

Florida allows you to protect a portion of your vehicle’s value through the motor vehicle exemption. In some cases, additional exemptions can be applied to increase protection.

Your Options for Keeping Your Car

If you have a car loan, you generally have three main options:

1. Stay Current and Keep the Car
   If you’re up to date on payments, you can often continue making payments and keep your vehicle.
2. Reaffirm the Loan
   This means you agree to keep the loan and remain responsible for the debt after bankruptcy.
3. Redeem the Vehicle
   You may be able to pay the car’s current value (not the loan balance) in a lump sum.

If your car is fully paid off and falls within exemption limits, you can usually keep it without issue.

What Happens If Your Property Exceeds Exemption Limits?

If your home or vehicle has equity above exemption limits, the bankruptcy trustee may have the right to sell the asset to pay creditors. However, this is less common than many people think.

Proper planning before filing can often help you protect more of your assets.

This is why working with a knowledgeable attorney is so important. Attorney John A. Russo carefully reviews each client’s financial situation to create a strategy focused on protecting property while eliminating debt.

Why Legal Guidance Matters in Chapter 7 Bankruptcy

Bankruptcy laws can be complex, and small mistakes can lead to costly consequences—like losing property you could have kept.

When you work with The Law Office of John A. Russo, P.A., you benefit from:

• Nearly 20 years of experience helping Central Florida residents
• Personalized attention to your financial situation
• Clear explanations of what you can expect
• A strategic approach designed to protect your home, car, and future

Take the First Step Toward Financial Relief

If you’re struggling with debt but want to keep your home and car, Chapter 7 bankruptcy may be the solution you’ve been looking for.

Don’t try to navigate this process alone. Let a trusted Central Florida bankruptcy attorney guide you every step of the way.

Call The Law Office of John A. Russo, P.A. today at 833-RUSSOFL to schedule your consultation and learn how you can protect your assets while eliminating debt.