Exemptions For Cars And Vehicles In Chapter 7

All states specifically provide a Chapter 7 exemption for cars, vehicles and transportation. The basis of the exemption is founded on necessity, in that transportation to and from work is essential. Bus lines and other public transportation do little for rural residents, or those living away from major thoroughfares. In addition, the federal exemptions also provide a similar allowance.

All car exemptions are subject to value limitations. Further, liens upon cars remain valid when filing Chapter 7, so that the underlying debt must be repaid to maintain possession. Past due amounts must also be brought current if choosing Chapter 7, to prevent the court from granting a motion to lift stay which enables repossession.