impairs an exemption
- Occurs when the combined value of a debtor's liens and exemptions exceeds the worth of their property, thereby reducing the exemption's effectiveness
- After calculating the mortgage and liens, it was clear that her debt impairs an exemption on her home equity.
- The auto loan significantly impairs an exemption on his car, leaving little to claim as exempt.
- Because of numerous liens on her assets, her financial situation severely impairs an exemption.
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