cars are paid for

[joecitizen]

I have two paid for cars and my understanding is, unless I actually have a car loan or lease I can not claim the exemption. Is it possible to take out a small loan against each car (help pay for the bk) and then qualify for the car exemption? What would need to be done and how would I go about it? How long would I need to wait on filing a bk after I take the loans out?

[BKAttyMI]

You are confusing "equity" in your vehicles with claiming an exemption for the vehicles. I'm not familiar with CA's exemptions, a bankruptcy attorney in CA can answer this at a consult.

[stratos]

I have two paid for cars and my understanding is, unless I actually have a car loan or lease I can not claim the exemption. Is it possible to take out a small loan against each car (help pay for the bk) and then qualify for the car exemption? What would need to be done and how would I go about it? How long would I need to wait on filing a bk after I take the loans out?

I think you might be thinking about the vehicle ownership expense. You can't take the ownership expense if you don't have a payment, but not owing money on the car wouldn't keep it from being exempt.