What exactly is the "silent exemption" in Chapter 7 bankruptcy in California and how does it work?

Question

I have heard that I may be able to keep my car even though it's worth $2000 more than the $3530 exemption by using the silent exemption but I have no idea what it is and how to use it.

David S. Greenberg · Answer

You are referring to the wildcard exemption of up to $28,225.00. You can use this exemption for any purpose, includin your $2,000.00 vehicle equity. 
 
You can then use the remaining wildcard exemption of $26,225.00 as needed. 
 
Please note that this is available if you are not using a homestead exemption on a personal residence.

Timothy Denison · Answer

I think you mean the wildcard exemption, which would allow you to protect the $2,000 overage in your car.

Theodore Allan Greene · Answer

I have never heard of that term. You should consult with a bankruptcy attorney to know for sure.

Harlene Miller · Answer

As my colleagues indicated - I have never heard of the "silent exemption."  Don't know that there is such a thing.  Depending upon your assets, you may qualify to use what is called the "wildcard" exemption which you can use toward assets with more value than a specific exemption for that asset, i.e., a car.  Suggest you meet with an experienced bankruptcy attorney to discuss all your assets and how they may be protected if you file bankruptcy.

Q: What exactly is the "silent exemption" in Chapter 7 bankruptcy in California and how does it work?