The equivalent of your van can be reduced by the context, including milage, dents and rust that may annex accumulated over eternity.
Instructions
1. Calculate the cost of your car.The extent of fairness you chalk up in your automobile Testament actuate what Testament happen to it provided you record a sheet 7 bankruptcy. Another fixin's to deliberate is the exemption for your homeland. An exemption is the bigness of fairness protected from creditors during bankruptcy. Fairness is intent by subtracting your loan balance from the fair market value of your machine.
Moxie to the Civic Vehivle Dealers Corporation (NADA) conductor, and enter the cook, model and condition of your car. When all of the categories have been entered, you will be presented with the value of your automobile. The value will be decreased if you have high mileage.
2. Find out how much you owe on your car. Call the lender using the customer service toll-free number located on your monthly statement. Speak to a representative, and ask for the balance on your account. Make sure all payments have been posted to your account.
3. Subtract the balance owed on your car from the fair market value established by the NADA Guide. The excess of the fair market value over the balance represents the equity. If the balance is larger than the fair market value, you have no equity in your car.
4. Determine the amount of exemptions for your state. Exemptions vary from state to state. An exemption is the amount of equity that is protected from the claims of creditors. For instance, if your car is valued at $5,000 and the balance owed is $3,000, the equity is $2,000. If the automobile exemption for the state is $2,000 or more, you can keep your car. If the exemption limit is $1,500, you would have to turn the car over to the trustee to be sold, or you could pay the trustee $500 and keep your car.
