In Chapter 7

• In Chapter 7 bankruptcy, the court will value your car by determining the current NADA value and subtracting the amount of any loans on the car. Many people who file bankruptcy owe more on the loan than what the car is worth.
  
  

Car Value and Exemptions

• Chapter 7 bankruptcy allows people to keep a paid-for vehicle as long as the NADA value is less than the vehicle property exemption amount in the debtor's state. The exemption amount varies depending on if the state allows debtors to use federal exemption amounts or if the state requires debtors to use its own exemption amounts. If the vehicle is over the exemption amount, debtors may use the wild card exemption, if it is available in their state, to cover the remaining value, or else surrender the car to the court to pay creditors or give the court a check in the amount over the exemption.
  
  

In Chapter 13

• People who file Chapter 13 and wish to include a vehicle loan in the repayment plan value their car differently depending on the purchase date. If a debtor bought the car less than 910 days, or 2 and a half years, before he filed bankrutpcy, he must repay the entire loan. If the debtor bought the car more than 910 days before filing, he only has to repay the current NADA value of the car.
  
  

Calculating the Value

• Go to the NADA website. Click the "Start Here" icon to begin a questionnaire about the make, model, age and condition of your car and any optional or after-market accessories the car has. The last screen with give you the approximate value of your car. If you disagree with the NADA valuation, take the vehicle to an accredited appraiser who can give an a more specific estimate. Give the appraiser's statement to the court.