car loan question

[thebleurose]

I am preparing to file a chapter 13. I am a little confused about my car loan. I understand that since I financed the car w/in 910 days that I have to pay the full amount of the loan. Since I have to list the car as personal property, do I use the auto exemption to protect the amount that has been paid off? My loan was for $9000 and now the balance is $8000. So do I exempt the $1000? I apologize if this has already been answered but I cannot seem to find the answer.

Thanks.

[momofthree]

No. You exempt the equity in the car, based on the price you could sell it for today. If the car is now worth $9000, then you'd exempt $1000. If it's worth $10k, you'd exempt $2000, and if it's worth less than what you owe, you wouldn't need to exempt any of it. Original loan amount has nothing to do with the exemption...

[thebleurose]

thank you. now i understand.