Frequently Asked Questions 

Q. So I exempted my vehicle, what happens to it?

A. You didn't actually exempt the vehicle (or any asset) you really only exempted the equity (if any) in the asset . So, if you have a loan for $17,000 on a vehicle worth $20,000 then you exempt $3,000. However this does not mean you get to keep the car free. You only keep the vehicle if you make payments on it.

On the other hand, if the situation was reversed and you owed $20,000 on a vehicle worth only $17,000 then you could choose to simply give the vehicle back and owe nothing. One of the advantages to filing bankruptcy.

Return To Frequently Asked Questions

If you have any questions that were not answered here, please contact us for a free consultation.