Can I use state exemption to cover car I still owe on

[Buried1]

I owe $6,000 on a car I bought in 2005. I want to keep my car. I will be filing under CO bk rules, and it shows the exemption for a motor vehicle used for work is $5,000.

Has anyone paid their car loan down to their state's exemption amount and been able to use that exemption to cover - "pay off" - the amount remaining on their car loan so that they can keep the car? Would this eliminiate the necessity to reaffirm?

[TEW]

I owe $6,000 on a car I bought in 2005. I want to keep my car. I will be filing under CO bk rules, and it shows the exemption for a motor vehicle used for work is $5,000.

Has anyone paid their car loan down to their state's exemption amount and been able to use that exemption to cover - "pay off" - the amount remaining on their car loan so that they can keep the car? Would this eliminiate the necessity to reaffirm?

the exemption is for what the car is worth not what you owe.

[Buried1]

That's what I suspected

Thank you. So many angles, so little time!

[Trixie007]

The exemption is for the equity in the vehicle - so if you owe 4k and the value is 6k, you have 2k in equity. The exemption doesn't remove the debt tho.