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 can't 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.
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.
The motor vehicle exemption safeguards the equity in a car, truck, motorcycle, or van during Chapter 7 bankruptcy. Explore bankruptcy exemptions, reaffirmation agreements, and more to prevent losing your vehicle in Chapter 7 bankruptcy.
Find out the chances of losing a financed vehicle to repossession when you file for Chapter 7 and what you should do if you want to keep your car.
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