Car Values

[overthedebt]

When a car's "worth" is determined, is it how much equity you have in the car? For example, if you are making payments on a vehicle that was bought new for $25K but you still owe $22K, do the courts use the blue book value of the car or how much you've paid into the loan? Also, how do lease situations work?

[iv65536]

They would look into the blue book value. If you bought new for $25k and owe $22k, I'm pretty sure you're underwater on the car loan - as far as exemptions are concerned, a good thing. Based on the value, I doubt you have owned the car long enough to "cram down" the car loan.

[whipster1]

No cram down in a 7 anyway. Use the blue book private party value.