In any state, what you do with the car AFTER the repo is up to you and the lender. Before the repo, yes, sometimes key cutting is the only way to get the car.(blocked in,cant get to it with a truck,ect) Some keys are very expensive, so make sure you really need one before you pay the money.
No, the exemptions allowed are not subject to forfeiture. When a person is sued numerous times the same exemptions will apply in each lawsuit judgment. It would be in the best interest of the debtor to review their exemption status to be certain they are protecting all personal and real property that is allowed according to their state laws. There are also federal non-bankruptcy exemptions that can be used by the debtor if they are applicable to the individual's situation.
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