I'm sure this is a stupid question but...

[heartheart]

How does it work if your asset is just over the exemption value? For example, the auto exemption is $2000 but your car is worth $3000? Would you have to sell your car and give them that $1000? Would they just not bother?

[shotgun7]

The trustee (not you) could sell your car, if he thought there was enough gain in doing so. Say your exemption is as you say 2,000 and its worth 3,000. If he/she sold it for $2600, then he would give you $2000 (amount of your exemption) and use the $600 minus his cost to pay your creditors.

However, depending on your state and if you use State or Federal exemptions. Most have atleast some wildcard exemption that you can apply toward anything. Say you had a 2000 exemption for a car, you could take 1000 of your wild card and apply it to the car.

[keepsmiling]

Not a stupid question
TT could also let you buy back the car, perhaps with some room for negotiation. He'd save on commission fees and personal aggravation.
Be very sure about the value of your car. Carmax is often suggested, unless tt insists on KBB or something else.

[HHM]

For smaller amounts like that, >$1000 to about $3,000, the trustee will generally entertain an offer by the debtor to simply pay the amount. Usually at somewhat of a discount if the alternative for the trustee is to take possession and sell the item. Generally, most trustees will sign off on a 3-6 month payment plan.

[btbeme]

I would also add that valuing a used car can be something of a difficult job, as the website estimators sometimes have wildly varying viewpoints on values. You might try a local CarMax or other dealership to see what their written CASH offer for your vehicle would be. Just a thought. The closer to the exemption value, the better. Just be sure to document the value(s) as best you can, since the Trustee will often try to use the value that they trust, and you might have to make the case that it is worth a different amount.

[msm859]

Since the value of a used car is subjective I would probably just list the value as $2,000.00. Let the Trustee question it if he wants.