24 May Connecticut’s Exemption in Cars
Since July 1, 2007, Connecticut has recognized a $3,500.00 exemption in automobiles. Many websites out there (including some maintained by Connecticut lawyers) miss the fact that the exemption amount increased from $1,500.00 to $3,500.00 nearly two years ago.
An exemption in an automobile (or truck) is calculated by taking the market value of the vehicle and subtracting the loan balance to get the equity value. If that number is $3,500.00 or less, the car is exempt from creditors on any execution issued by the Connecticut Superior Court to aid in the collection of a judgment. In a bankruptcy case, Connecticut allows a choice of either the Federal Exemption scheme or the state exemptions. If you want to keep your car in a bankruptcy case, the choice of the exemption statute may make the difference.