How does the car exemption work

[contemplate]

Ok. Exemption for dummies questiion: If the exemption for a car is say 470, and my actual car payment is less than that, would we get to keep the difference? Thanks for taking the time to answer this question.

[LJoutWest]

My understanding and if I'm wrong I hope someone clears this up for me, is that the amount of your payment is deducted from the $470 and the difference is given to you to help pay your registration etc. On a chapter 13 you have to think that the extra money is not extra, you need to file it away for registration, tires, etc. It's hard to save on a 13 but if we face it our lawyer says you want to spend what you need to, pay the trustee and then try to save for those emergencies that come up and that we will be expected to cover without modifying the plan (unless it is a drastic change of situation or emergency).

[optimistic1]

You will not get to keep it, but.

If you take the difference and move it to other areas of your budget that stay within the allowable limitations, then you would. You have to be smart about how you go about your budget, some lawyers are smart and give you the added cushion, others dont know what the hell they are doing, and you wind up with a monthly payment that is larger than it has to be.