impairs an exemption

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

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