Will I lose my car if I file Chapter 7?

That is not something a worksheet can answer. Equity above a published exemption amount is what draws a trustee's attention, but the outcome also depends on the loan, whether payments are current, and what the court allows. The § 342(b) notice is blunt that liens survive discharge and a creditor may have the right to repossess an automobile.

Does the exemption apply to the car's value or just my equity?

To equity. Several statutes say so directly: California exempts the aggregate equity in motor vehicles (Cal. Civ. Proc. Code § 704.010(a)) and Arizona exempts equity in one motor vehicle (A.R.S. § 33-1125(8)). Alaska frames its exemption by value but adds a separate ceiling on the vehicle's full value (Alaska Stat. § 09.38.020(e)). Read your state's wording closely.

Can I use the federal exemption list instead of my state's?

Only if your state allows it. Under 11 U.S.C. § 522(b)(2), the federal list in § 522(d) is available unless the state law applicable to you under § 522(b)(3)(A) specifically does not authorize it. Which state's law applies is set by the 730-day domicile rule in § 522(b)(3)(A), not by where you live today.

I just moved. Which state's exemptions apply?

Section 522(b)(3)(A) applies the law of the place where your domicile was located for the 730 days immediately preceding the filing date. If your domicile was not in a single state for that whole period, it looks to where you were domiciled for the 180 days immediately preceding that 730-day period, or the longer portion of it.

What if I owe more than the car is worth?

Then there is generally no equity for an exemption to reach, and the worksheet will show zero or a negative figure. That is a common result for a financed vehicle. It resolves the exemption arithmetic only — the loan itself is a separate contract, and 11 U.S.C. § 524 treats any agreement to reaffirm it as a serious decision with required steps.

How do I value the car without an appraisal?

Most filers use a recognized used-vehicle guide. California measures fair market value by reference to price guides customarily used by California dealers (Cal. Civ. Proc. Code § 704.010(c)), and N.D.W. Va. LBR 3012-1 sets a presumptive value as the average of N.A.D.A. Average Trade-In and Clean Retail for the year, make, model and mileage. Local practice varies.

Does my spouse's car get its own exemption?

It depends on the state's wording and how you file. Some exemptions are written per vehicle, some as an aggregate. What 11 U.S.C. § 522(b)(1) makes clear is that in a joint case, one spouse cannot elect the federal list while the other elects the state list — if you cannot agree, the statute deems you to elect the federal paragraph where that election is permitted.

Is a work truck treated differently?

Sometimes, because a separate tools-of-the-trade exemption may reach it. Utah Code § 78B-5-506(2) covers implements and tools of the trade including motor vehicles to which no other exemption has been applied. California's § 704.060 covers one commercial motor vehicle with its own lower cap and bars the claim where a § 704.010 vehicle is already reasonably adequate for the work.

Tier 2 tool

Vehicle Equity Explorer

Compare vehicle equity to the exemption, with wildcard stacking.

Vehicle equity is what your car is worth minus what you still owe on it. Bankruptcy exemptions apply to that equity, not to the car's full value. Under 11 U.S.C. § 522, the available system may be the federal list or the list supplied by state and other nonbankruptcy law, but a state may bar use of the federal list. A motor-vehicle exemption commonly protects equity up to a published amount.

Key points

Equity, not sticker price, is the number an exemption is measured against.
A financed car with a loan balance above its value commonly has no equity to exempt at all.
Under 11 U.S.C. § 522(b), a debtor elects either the federal list or the list available under applicable state law, and states may bar the federal option.
Values are measured as of the date the petition is filed (11 U.S.C. § 522(a)(2)), so a figure from six months ago is the wrong figure.
This worksheet compares two numbers you supply. It does not decide whether you keep the car, and it is not legal advice.

If you are worried about losing your car, the number that matters is probably smaller than you think. Bankruptcy looks at your equity — the value of the vehicle minus the loan against it — not what the car would sell for on a lot. This worksheet walks that arithmetic and shows it next to the exemption figures published for your state.

What does this worksheet actually compare?

It compares two numbers. The first is your vehicle equity: the current value of the car minus the balance of any loan secured by it. The second is the motor vehicle exemption amount published for the list you would be claiming under. The output is the difference between them — how much equity sits inside a published exemption figure and how much sits outside it.

That is arithmetic, not a decision. The worksheet does not know your income, your other property, whether your loan is current, or which chapter you would file under. It does not look at a lien that is not a car loan, and it does not weigh anything a trustee would weigh.

Official Form 106A/B asks you to list each vehicle by make, model, year and mileage, and instructs filers not to deduct secured claims or exemptions when reporting value (Bankr. E.D. La. official guidance — Chapter 7 Form Packet). The worksheet does that deduction separately so you can see both figures.

Vehicle value minus loan balance equals equity.
Equity is then compared against a published exemption amount.
Anything left over is called non-exempt equity and is what a trustee would look at.

What does the law actually say about exempting a car?

11 U.S.C. § 522(b)(1) lets an individual debtor exempt property from the estate under either paragraph (2) of that subsection — the federal list in § 522(d) — or, in the alternative, paragraph (3). Section 522(b)(2) carries an important qualifier: the federal list applies unless the state law applicable to the debtor under § 522(b)(3)(A) specifically does not authorize it. Roughly half the states have said exactly that, and in those states the federal list is not on the table.

Section 522(b)(3)(A) sets which state's law applies. It points to the law of the place where the debtor's domicile was located for the 730 days immediately before filing. If domicile was not in one state for that whole period, it points to where domicile was for the 180 days immediately preceding the 730-day period, or the longer part of it.

Spouses filing jointly cannot split lists. Section 522(b)(1) provides that one debtor may not elect paragraph (2) while the other elects paragraph (3).

The two exemption routes under 11 U.S.C. § 522(b)
Route	Where the list comes from	Key limit in the statute
Federal list	11 U.S.C. § 522(d)	Unavailable if applicable state law under § 522(b)(3)(A) does not authorize it
State and other non-§ 522(d) federal law	§ 522(b)(3)(A) — law of the domicile determined by the 730-day rule	Subject to §§ 522(o) and (p)
Joint filers	Either route	Both spouses must elect the same paragraph

Why does the exemption amount differ so much by state?

Because each legislature sets its own figure, and several attach conditions the raw number does not show. Alaska exempts one motor vehicle up to a value not exceeding $3,000, but only if the full value of the vehicle does not exceed $20,000 (Alaska Stat. § 09.38.020(e)) — and a separate regulation adjusts both figures (8 AAC 95.030). California exempts the aggregate equity in motor vehicles in the amount of seven thousand five hundred dollars under Cal. Civ. Proc. Code § 704.010(a). Arizona exempts equity in one motor vehicle, with a higher ceiling where the debtor or a dependent has a physical disability, and an annual cost-of-living adjustment (A.R.S. § 33-1125(8)).

Some states also run a second, separate route. Utah exempts one motor vehicle up to a stated value, and separately exempts tools of the trade including motor vehicles to which no other exemption has been applied (Utah Code § 78B-5-506).

We publish verified state figures on the state pages rather than restating them here.

Some figures are aggregate across vehicles; others apply to one vehicle only.
Some carry a full-value ceiling on top of the equity cap.
Some adjust on a schedule, so an old table is not a current answer.

How do you put a value on the car in the first place?

This is where most worksheets go wrong, because the input is a judgment call and the statute is specific about timing. Under 11 U.S.C. § 522(a)(2), value means fair market value as of the date the petition is filed — or, for property that becomes estate property later, as of the date it does. A trade-in quote from last spring is not that number.

Courts and local rules point to recognized used-vehicle guides. California measures the fair market value of a motor vehicle by reference to used car price guides customarily used by California automobile dealers, unless the vehicle is not listed in them (Cal. Civ. Proc. Code § 704.010(c)). In the Northern District of West Virginia, the presumptive replacement value for a motor vehicle is the average between the N.A.D.A. Average Trade-In and Clean Retail value for the year, make, model and mileage (N.D.W. Va. LBR 3012-1). The Southern District of Ohio requires a redemption motion to state a value drawn from a recognized guide or an appraisal (S.D. Ohio LBR 6008–1).

Use a guide figure, keep the printout, and enter the honest number.

Value is measured on the filing date, not when you bought or last appraised the car.
Recognized used-vehicle guides are the common reference point; local rules vary on which reading.
11 U.S.C. § 527(a)(2)(B) notes that replacement value must be stated after reasonable inquiry where the forms ask for it.

How should you read the result?

Read it as a comparison with a wide error bar, not a verdict. If your equity comes out below the exemption figure you selected, that is a signal the vehicle equity is inside a published amount — a common, unremarkable position for a financed car. If it comes out above, the difference is non-exempt equity, and that is the number a conversation with a bankruptcy attorney should start from.

A result of zero or a negative number is ordinary. Many people owe more on a car than it is currently worth, which means there is no equity for an exemption to reach. That does not by itself resolve anything about the loan, which is a separate contract with its own consequences.

Also remember the result is only as good as the two inputs. A value guess that is high by two thousand dollars moves the answer by two thousand dollars, and an exemption figure taken from a stale table can be wrong in either direction.

Reading the comparison
What the worksheet shows	What it generally means	What it does not mean
Equity is zero or negative	No equity for an exemption to cover	That the loan goes away or the car stays
Equity below the exemption figure	Equity sits inside a published amount	That the exemption is allowed or unchallenged
Equity above the exemption figure	There is non-exempt equity to discuss	That the vehicle is sold or surrendered

What does this result not tell you?

It does not tell you whether you keep the car. That turns on things this worksheet never sees: the loan contract, whether payments are current, which chapter you file under, what a trustee decides is worth pursuing, and what the court allows.

It does not tell you whether an exemption you claim will stand. Exemption claims can be opposed. California's procedure requires a notice of opposition executed under oath, alleging either that the property is not exempt under the statute relied upon, or that the equity claimed to be exempt exceeds the applicable amount, with supporting facts (Cal. Civ. Proc. Code § 703.560). Similar disputes exist elsewhere.

It does not account for lien treatment. Section 522(f)(1) addresses avoiding certain liens that impair an exemption, and the § 342(b) notice packets warn that liens on property may still be enforced after discharge and that a creditor may have the right to repossess an automobile (Bankr. E.D. La. official guidance — Chapter 7 Form Packet). It also says nothing about reaffirmation, which 11 U.S.C. § 524 treats as a serious financial decision with its own required steps.

It is not an eligibility screen and not a prediction.
It does not evaluate lien avoidance, redemption, reaffirmation or surrender.
It is information, not legal advice, and no attorney-client relationship arises from using it.

What should you do next?

Write down the two inputs and where each came from. Note the guide you used for value, the date you pulled it, and the payoff figure from your lender rather than a remembered balance. Those are the same numbers the official schedules ask for, and having them written down makes every later conversation shorter.

Then widen the picture. A vehicle is one line on Schedule A/B, which also asks about real estate, household goods, financial accounts and retirement accounts (Bankr. N.D. Ill. official guidance — Chapter 7 - Additional Documents). Exemptions are claimed across the whole list, so a car question is rarely a car question for long.

It is also worth knowing the fixed costs. A Chapter 7 case carries a $245 filing fee (28 U.S.C. § 1930(a)(1)(A), (f)(1)), a $78 administrative fee and a $15 trustee surcharge. Chapter 13 carries a $235 filing fee (28 U.S.C. § 1930(a)(1)(B)) and a $78 administrative fee. Building a roadmap or speaking with a local attorney is the sensible next step.

Record the value source and date, and get a written payoff figure.
List your other property before assuming the car is the problem.
Check your state page for the exemption figures that apply to you.

Frequently asked questions

Will I lose my car if I file Chapter 7?: That is not something a worksheet can answer. Equity above a published exemption amount is what draws a trustee's attention, but the outcome also depends on the loan, whether payments are current, and what the court allows. The § 342(b) notice is blunt that liens survive discharge and a creditor may have the right to repossess an automobile.
Does the exemption apply to the car's value or just my equity?: To equity. Several statutes say so directly: California exempts the aggregate equity in motor vehicles (Cal. Civ. Proc. Code § 704.010(a)) and Arizona exempts equity in one motor vehicle (A.R.S. § 33-1125(8)). Alaska frames its exemption by value but adds a separate ceiling on the vehicle's full value (Alaska Stat. § 09.38.020(e)). Read your state's wording closely.
Can I use the federal exemption list instead of my state's?: Only if your state allows it. Under 11 U.S.C. § 522(b)(2), the federal list in § 522(d) is available unless the state law applicable to you under § 522(b)(3)(A) specifically does not authorize it. Which state's law applies is set by the 730-day domicile rule in § 522(b)(3)(A), not by where you live today.
I just moved. Which state's exemptions apply?: Section 522(b)(3)(A) applies the law of the place where your domicile was located for the 730 days immediately preceding the filing date. If your domicile was not in a single state for that whole period, it looks to where you were domiciled for the 180 days immediately preceding that 730-day period, or the longer portion of it.
What if I owe more than the car is worth?: Then there is generally no equity for an exemption to reach, and the worksheet will show zero or a negative figure. That is a common result for a financed vehicle. It resolves the exemption arithmetic only — the loan itself is a separate contract, and 11 U.S.C. § 524 treats any agreement to reaffirm it as a serious decision with required steps.
How do I value the car without an appraisal?: Most filers use a recognized used-vehicle guide. California measures fair market value by reference to price guides customarily used by California dealers (Cal. Civ. Proc. Code § 704.010(c)), and N.D.W. Va. LBR 3012-1 sets a presumptive value as the average of N.A.D.A. Average Trade-In and Clean Retail for the year, make, model and mileage. Local practice varies.
Does my spouse's car get its own exemption?: It depends on the state's wording and how you file. Some exemptions are written per vehicle, some as an aggregate. What 11 U.S.C. § 522(b)(1) makes clear is that in a joint case, one spouse cannot elect the federal list while the other elects the state list — if you cannot agree, the statute deems you to elect the federal paragraph where that election is permitted.
Is a work truck treated differently?: Sometimes, because a separate tools-of-the-trade exemption may reach it. Utah Code § 78B-5-506(2) covers implements and tools of the trade including motor vehicles to which no other exemption has been applied. California's § 704.060 covers one commercial motor vehicle with its own lower cap and bars the claim where a § 704.010 vehicle is already reasonably adequate for the work.

Sources

11 U.S.C. § 522 — Exemptions · official source
11 U.S.C. § 524 — Effect of discharge; reaffirmation · official source
11 U.S.C. § 527 — Disclosures · official source
Cal. Civ. Proc. Code § 704.010 — Motor vehicle exemption
Cal. Civ. Proc. Code § 704.060 — Tools of the trade; commercial motor vehicle
Cal. Civ. Proc. Code § 703.560 — Notice of opposition to claim of exemption
Alaska Stat. § 09.38.020 — Exemptions of personal property subject to value limitations
8 AAC 95.030 — Adjusted exemption amounts
A.R.S. § 33-1125 — Personal items
Utah Code § 78B-5-506 — Value of exempt property; tools and motor vehicles
N.D.W. Va. LBR 3012-1 — Valuation of collateral
S.D. Ohio LBR 6008–1 — Redemption
Bankr. E.D. La. official guidance — Chapter 7 Form Packet
Bankr. N.D. Ill. official guidance — Chapter 7 - Additional Documents
28 U.S.C. § 1930(a)(1)(A), (f)(1) · official source
28 U.S.C. § 1930(a)(1)(B) · official source
Bankruptcy Court Miscellaneous Fee Schedule, Item 8
Bankruptcy Court Miscellaneous Fee Schedule, Item 9

By Antonio G. Jimenez, Esq. · Florida Bar No. 21022

Last reviewed July 31, 2026 · Sources verified July 31, 2026 · How we verify

Every figure on this page is drawn from a primary legal source and checked against our canonical legal database before publication. Bankruptcy.law is not a law firm and does not provide legal advice.

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