Can a Creditor Take Your Car in Florida?

The simple answer is yes. A creditor can take your car in Florida, but only under certain conditions. If you’ve used your car as collateral for a loan, like an auto loan, the lender can repossess it if you fall behind on payments. In addition, a creditor with a valid judgment can seize your car, though Florida law exempts the first $1,000 of equity in your vehicle.

Understanding Car Seizure

In Florida, a typical creditor cannot take your car without first obtaining a court judgment against you. This means that if you default on an unsecured debt—such as credit cards or medical bills—the creditor must file a lawsuit, win the case, and obtain a judgment before attempting to collect.

However, if the car is collateral for a loan, such as in the case of an auto loan, the creditor has different rights, and repossession could occur without a court judgment.

When Can a Creditor Take Your Car in Florida?

If your vehicle is financed and you fall behind on your payments, the lender can repossess the car without obtaining a court order. This is because the vehicle itself serves as collateral for the loan. Once repossessed, the lender can sell the car to recover the debt.

Creditors of unsecured debts must go through the court system to obtain a judgment before attempting to seize assets, including your car. However, if your vehicle is protected by exemptions (explained below), it may be safe from seizure.

Florida Vehicle Exemptions

Florida law offers some protection to vehicle owners through the state’s exemption laws. However, the exemption values are small.

You can exempt up to $1,000 in equity in your car. Equity is the difference between the car’s value and any outstanding loan on it. If the car’s equity is less than $1,000, it is considered fully protected under Florida law, and a creditor cannot take it.

In addition, if you do not claim the homestead exemption, Florida law permits an additional $4,000 in personal property exemption, which can be applied to protect your vehicle.

If you are married and your vehicle is owned as tenants by entireties, then the creditor cannot seize any portion of the car if the judgment is against only one of the two spouses.

Vehicle Levy in Florida

The process where a creditor takes your car after getting a judgment is called a vehicle levy.

To levy a vehicle in Florida, a creditor must notify the sheriff about its details, including its make, model, and VIN. The sheriff then seizes the vehicle from the debtor’s home or business and holds it until a public auction. Proceeds from the sale are given to the creditor. The process requires filing an execution, locating the vehicle, checking for liens, and managing auction logistics. Initial costs range from $710 to $5,000, with potential refunds from the sheriff’s office.

The creditor must obtain a judgment through a lawsuit before they can levy your vehicle. Without this judgment, a creditor cannot legally seize your car.

The creditor does not need to give you notice before it attempts to levy your vehicle.

Will the Creditor Actually Seize Your Car?

For most cars, it is not worth it for the creditor to go through the levy process. It is usually not cost-effective. In addition to the actual levy, the creditor must also locate the vehicle, evaluate its condition, and research preexisting vehicle liens. Sometimes it can be hard to find the vehicle if the debtor moves it to another location.