Florida House Passes Bill Increasing Motor Vehicle Exemption During Bankruptcy

Tallahassee, Fla. –The Florida House of Representatives today passed CS/HB 265, which increased the value of motor vehicles owned by individuals in certain legal processes, including bankruptcy.The bill increases the motor vehicle exemption from $1,000 to $5,000, enabling more people to keep their cars during bankruptcy proceedings. The previous $1,000 exemption was one of the lowest in the nation.

The bill, put forth by the Civil Justice & Property Rights Subcommittee, was co-sponsoredby Rep. Michael Gottlieb (D- Davie) and Rep. Christopher Benjamin (D- Miami Gardens). If the Senate version also passes and it becomes law, it will take effect on July 1.

“This bill raises the value of an exempt vehicle, the first increase since 1993. It will help working Floridians who are struggling to make ends meet and have the unfortunate situation of having to file for bankruptcy,” said Representative Gottlieb. “I appreciate the input from the Bar and especially from attorney Chad Van Horn who brought the issue to my attention.This will help those who are in debt and financially vulnerable. If you lose your car it’s hard to get to work, go buy groceries, or take care of a family. This will remove a burden on already struggling Floridians.”

“I see hundreds of people each year lose their transportation in bankruptcy proceedings, which makes it harder for them to work and perpetuates the downward spiral into financial insecurity and distress,” said Chad Van Horn. “This bill really will help many of our citizens who are deep in debt. It was my pleasure to assist Rep. Gottlieb by providing background and offeringexpertise in support of this legislation.”

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