The Motor Vehicle Exemption in Bankruptcy

If you file for bankruptcy, motor vehicle exemptions protect a certain amount of equity in your car, truck, van, motorcycle, or other automobile. If all of your equity is covered by a car exemption, the trustee cannot take your car in a Chapter 7 bankruptcy. If some equity remains unprotected by an exemption, you may lose it. Motor vehicle exemptions play a role in Chapter 13 bankruptcy as well -- the value of your nonexempt property (including car equity that is not protected by a motor vehicle exemption) determines the minimum amount you must repay your unsecured creditors through your Chapter 13 plan.

Keep in mind that even if all of the equity in your car, van, motorcycle, or other automobile is exempt in Chapter 7 bankruptcy, you still might lose the car to the lender of your car loan.  

The articles below explain how the motor vehicle exemption works in bankruptcy and other factors that determine if you can keep your car or not.

Get Professional Help
Get debt relief now.
We've helped 205 clients find attorneys today.
There was a problem with the submission. Please refresh the page and try again
Full Name is required
Email is required
Please enter a valid Email
Phone Number is required
Please enter a valid Phone Number
Zip Code is required
Please add a valid Zip Code
Please enter a valid Case Description
Description is required

How It Works

  1. Briefly tell us about your case
  2. Provide your contact information
  3. Choose attorneys to contact you