davaoprojects's Spot Follow

The Bankruptcy Code exemption for a car or automobile is $3,225. This comes under the federal exemption list, not on the Pennsylvania state exemption list. Nonetheless, it is available to you. Your car’s equity is based on its market value, subtracted of the loans on it. If the equity is more than $3,225, it’s possible that you could apply exemption amounts from other categories, such as the exemption for tools of the trade, if you use your car for chiefly for work. If the trustee sells it, you’re entitled to receive the exemption amount. Finally, it’s possible to pay the trustee the amount above the exemption and keep the vehicle.