Too much equity in vehicle?

[LostinMI]

What is the name of your state?MI

What happens if there is too much equity in my vehicle? According to KBB it's worth $3900 (but not likely).... and if I am reading the fed allowances correctly, I can only exempt upto $2400. What happens then? Can I use any unused portion of the homestead exemption to cover the excess value? Do I have to turn over the vehicle or can I pay the difference (assuming I can come up with that kind of cash). Would that have to be paid right at the meeting w/Trustee or do they setup a timeframe to have it paid?

Lots of questions & waiting to hear from lawyer!!

 

[Ladynred]

First, don't use KBB, its going to be too high. Get a quote from a car dealer for TRADE-IN value, then whack off any amount needed for repairs, damage, etc.

Second, if your equity is still too high, Federal exemptions DO allow you the following:

unused portion of homestead to $9,250 may be applied to any property;

So yes, you can use some of that to protect your vehicle.

I doubt you'd have to worry about redeeming it to keep it.