Vehicle Levy and Repossession: Can a Creditor Take Your Car?

A Florida creditor can seize your car through a process known as a vehicle levy. The process is carried out by the Sheriff’s Office at the request of the creditor.

Understanding Car Levy in Florida

Your creditor cannot take your car just because you owe money. The creditor must first file a lawsuit to enforce your obligation and obtain a final money judgment against you.

Levies are a tool creditors may use to collect a Florida judgment. Car levies may be used to collect any money judgment and are not limited to the money you owe the creditor that financed your car purchase.

Levy Procedures

Car levies are carried out by the sheriff office in the county where your car is located.

First, the judgment creditor notifies the sheriff that it has a judgment and that the judgment debtor owns a car. The creditor instructs the Sheriff about your car’s make, model, and VIN number. The sheriff will locate the car and proceed to pick it up. The sheriff holds the vehicle until he offers the car for sale at a public auction.

Sale proceeds are used to reimburse the sheriff for his costs, pay off any car loans, and distribute the balance, if any, to the creditor to pay the judgment. 

When Do Creditors Levy Cars to Collect a Judgment?

A judgment creditor does not always use a car levy to collect a judgment. Levies can be expensive.

Sheriff costs, including storage and auction fees, can be several thousand dollars.

Cars are easy to hide, and a creditor may have trouble locating the debtor’s vehicle. Creditors also must consider the vehicle condition when evaluating whether the costs and any existing car debt will lead to a significant recovery.

Car Equity Exempt From Creditor Levy

Florida law protects many types of assets from judgment collection. Florida Statute 222.25 protects from levy up to $5,000 in your vehicles equity.

To assert the exemption, the debtor must within 15 days of the levy submit an affidavit to the court and the sheriff detailing the claim of exemption. If the creditor disputes the claim of exemption, a court will hold an evidentiary hearing to determine the validity of the exemption.

The $5,000 exemption applies to unsecured judgment creditors. You cannot assert this exemption to protect your car from collection by creditors holding a lien on your car.

Summary

Vehicle levies scare many of our clients because they fear the inconvenience of losing their mode of transportation.

However, we find that car levies are infrequent because judgment creditors realize that the amount of recovery is diminished by car liens, sheriff costs, and legal costs.

In our experience, creditors often pursue car levies with large judgments against wealthy debtors who typically own expensive cars free and clear of liens.