Gov. Ron DeSantis vetoed a measure last week that would have provided some much-needed relief for those struggling financially in Florida. The specific measure, HB 265, was passed unanimously by both the state senate and legislature during the most recent legislative session, where it was quickly vetoed by DeSantis. This bill represents the third bill vetoed by the governor.
This bill would have given Floridians facing bankruptcy relief by providing them credit for any equity they may have had in their vehicle. The law would increase the bankruptcy exemption provided to debtors in their cars from $1,000 to $5,000.
DeSantis’s reason for vetoing the bill was that he believed the law would have incentivized Floridians to file for bankruptcy.
Current state law allows bankruptcy filers to utilize certain bankruptcy exemptions to protect their property, including their home and vehicles. Bankruptcy filers in Florida are allowed to seek protection up to $1,000 in personal property, including the equity they may have in their vehicles. The proposed measure would have bumped this amount of protection up to $5,000.
One of the reasons the legislature pushed hard for this measure has to do with the fact that the Florida vehicle equity protection amount has not been increased since 1993, even though car prices have steadily increased over the last 30 years.
This measure could have been just enough to allow bankruptcy filers to retain their cars after filing for Chapter 7 bankruptcy. For example, if a filer had a vehicle with a fair market value of $6,000, he or she would only be allowed to claim $1,000 in exemptions to keep his or her personal property. In order to keep the car, the filer would have to pay the extra $5,000 in equity. However, this new law would have allowed the consumer to claim $5,000, only requiring him or her to pay $1,000. That amount may seem small to some consumers, but to someone struggling financially, it could be enough to keep his or her form of transportation.
It is unclear whether this bill would have actually increased the number of bankruptcy cases filed every year, but it will put Floridians struggling financially in an even more difficult situation if they face the possibility of losing their form of transportation to and from work.
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If you have questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.
DeSantis vetoes bill on increasing vehicle exemptions in bankruptcy proceedings (tampabay.com)