question about truck

[okiemom2008]

we bought a used tool truck from a retired tool man in may 2008. We paif 10,500 for it and put it on 2 credit cards with 0% interest. chase and citi. The tool business did not work out and we have had it for sale since august for 10,500. We are giving up our only vehicle in the bk and need to sell the tool truck to get a used vehicle. Can we sell it even though we paid for it with cc's and have not paid them off and are includign them with the bk. we paid monthly payments on them until november.

We want to sell it at 7500 and take a loss just so we can get the money and get another vehicle and file.

[lrprn]

Can we sell it even though we paid for it with cc's and have not paid them off and are includign them with the bk. we paid monthly payments on them until november.

A couple of questions first....

Do you have the truck's title in your possession?

Even if you do have the title, with the economy what it is right now it's possible you may not be able to find a buyer right away. What's your plan if the truck doesn't sell quickly?

[pigpen75]

So you sell the truck for $7,500 and buy a used one for the same price. The trustee will take your vehicle and sell it to pay off your debts. I would sell the truck and use the money on a down payment on a new vehicle and once you go BK reaffirm that auto loan and the trustee won't mess with it.

[okiemom2008]

A couple of questions first....

Do you have the truck's title in your possession?

Even if you do have the title, with the economy what it is right now it's possible you may not be able to find a buyer right away. What's your plan if the truck doesn't sell quickly?

yes we have the title

If we do not sell it we planned on keeping it since we have no vehicle and we are allowed two..I could be wrong though...

[okiemom2008]

So you sell the truck for $7,500 and buy a used one for the same price. The trustee will take your vehicle and sell it to pay off your debts. I would sell the truck and use the money on a down payment on a new vehicle and once you go BK reaffirm that auto loan and the trustee won't mess with it.

I had no idea he could do this. So are you saying to buy a new vehicle? We cannot afford payments on a car after bk. We planned on driving cars that are paid off. Now I am so confused. Maybe we could go out and buy a 8500 car and put 7500 down. What is re-affirming-anything like 722?

[TEW]

I had no idea he could do this. So are you saying to buy a new vehicle? We cannot afford payments on a car after bk. We planned on driving cars that are paid off. Now I am so confused. Maybe we could go out and buy a 8500 car and put 7500 down. What is re-affirming-anything like 722?

Ok first of all you need to get the judge to approve a reaffirmation they will not approve it if it is going to be a hardship on you.
If you want to do 722 redemption you have to come up with money to pay it off. There are some banks that have 722 loans but they are very high interest rates.

[okiemom2008]

I would rather sell the tool truck for 7500 and buy a used vehicle for 7500 or less and be done...but not if the trustee can take it....

[StartingOver08]

I would rather sell the tool truck for 7500 and buy a used vehicle for 7500 or less and be done...but not if the trustee can take it....

Did you check your vehicle exemptions for the state you are filing in yet? You are only allowed to keep what you can exempt in a CH 7. For example, here in FL I am allowed to have $1000 total exemptions EXCEPT in the case of giving up a homestead residence, which I am, then I am allowed an additonal $4000 in exemptions for a total of $5000. That is for everything - vehicles, cash, furniture, clothing, etc. etc.

That is what you need to look at - what is your total exemption allowed and what are you going to use it on - what are the limits that you can use it on...etc. That is how you plan this BK. Here is the link to Oklahoma Bankruptcy Exemptions for you, if that is where you are still (can not remember where you are):

http://www.bankruptcyinformation.com/OK_exemp.htm

Ok forgot you were in Kansas now. This is the link for Kansas exemptions:

http://www.bankruptcyinformation.com/KS_exemp.htm

[okiemom2008]

Did you check your vehicle exemptions for the state you are filing in yet? You are only allowed to keep what you can exempt in a CH 7. For example, here in FL I am allowed to have $1000 total exemptions EXCEPT in the case of giving up a homestead residence, which I am, then I am allowed an additonal $4000 in exemptions for a total of $5000. That is for everything - vehicles, cash, furniture, clothing, etc. etc.

That is what you need to look at - what is your total exemption allowed and what are you going to use it on - what are the limits that you can use it on...etc. That is how you plan this BK. Here is the link to Oklahoma Bankruptcy Exemptions for you, if that is where you are still (can not remember where you are):

http://www.bankruptcyinformation.com/OK_exemp.htm

Ok forgot you were in Kansas now. This is the link for Kansas exemptions:

http://www.bankruptcyinformation.com/KS_exemp.htm