Let’s take a look at an example …
Say you own a car with a market value of $5,000. You live in a state that offers a $6,000 motor vehicle exemption. After claiming your exemption, you get to keep your car.
But say you lived in a state where the exemption was only $3,000. In that case, the trustee could repossess the car, sell it and send you a check for $3,000.