Exempt motor vehicles bankruptcy chapter 7

You are allowed $1,000 as an equity exemption for a vehicle. You can keep both vehicles in a Chapter 7 bankruptcy, but you would have to pay the trustee the fair market value for the vehicles less the $1,000 exemption. In most cases the trustee would allow you up to 12 months to pay for the amount above the $1,000 exemption. Also, if you are not keeping a home, you are allowed an additional $4,000 as a wildcard exemtion that could be applied against the value of the vehicles. You should have the vehicles appraised by an appraiser approved by the court, since in many cases the NADA value may be higher that the true value of the vehicle.