Home and car are considered assets to take in my state.
Maybe in yours but most states certain property is exempt from seizure in garnishment/bankruptcy proceedings.
That’s always been the rule. You’re talking about recouping from people who will probably never win the lottery in their lives.
The government would probably spend more than it would take in increased revenue.
Even in Maine a claim of hardship by the estate would routinely result in the state waiving its right to recover.