Even after your car has been repossessed in Florida, you still have options available to you. You can redeem your car, reaffirm your car loan, or surrender your car. Car redemption: This is an option if you have money at your disposal. You can call the car lender and offer to pay a lump sum to get the car back.

What happens when your car is repossessed in Florida?

Once your car has been repossessed, your creditor may decide to keep the car as compensation for your debt or resell it in a public or private sale. In either case, your creditor must notify you about what will happen to the car. If sold via an auto dealer, you will be notified of a date after which it will be sold.

Is it better to have a bankruptcy or repossession?

Bankruptcy can stabilize your finances, and while a bankruptcy filing may decrease your credit score, it is no worse than multiple charge-offs, repossessions or a foreclosure that continue to be reported to the credit bureaus each month.

Can a car be repossessed after Chapter 7 bankruptcy?

Filing for Chapter 7 bankruptcy can erase your personal liability to pay back your car loan, but it can’t erase the lien your creditor has against the vehicle. The way to prevent car repossession after Chapter 7 discharge is to stay current on your monthly payments.

What happens to your car when you file bankruptcy?

Keep reading to find out what to expect if your car is repossessed after filing Chapter 7 bankruptcy. Written by Attorney Jenni Klock Morel. Filing for Chapter 7 bankruptcy can erase your personal liability to pay back your car loan, but it can’t erase the lien your creditor has against the vehicle.

Can a car be redeemed after bankruptcy?

Redemption in bankruptcy allows you to pay the lender the fair market value of the car in a lump sum, rather than paying the amount you owe. Redeeming your car makes sense if your car is worth significantly less than the amount you owe on the car loan.

What does Chapter 7 bankruptcy mean in Florida?

Chapter 7 bankruptcy is also known as liquidation bankruptcy. In Chapter 7, the borrower may be required to sell certain assets as a requirement of the case. Fortunately, not all of a debtor’s assets will be subjected to liquidation by the bankruptcy court. Florida bankruptcy law provides exemptions for many of the assets a debtor might own.