So sorry to keep bothering

I know I keep asking questions but I am so lost and confused.

So my question now, we really want to file chapter 7, we have negative equity in our house about $20,000, and negative equity in our vehicle about $11,000. House is worth $215,000, we owe $240,000 bought at a really bad time (March of 2006) a month later values significantly dropped. Car, we owe $24,000, worth only $11,000 (maybe less). My husband is a owner operator (truck driver owns tractor tractor). The truck is probably worth $20,000 ( we don't owe any money on it, we have the title). My question is, could we file chapter 7, under this rule: File Chapter 7 and redeem the asset from the trustee (i.e. buy the asset back from the trustee.)

Thanks for all the helpful information, I am still sick to my stomach but at least there is a place where people care and don't judge others (except for a few that I have read).

(DID1, I moved your question here from the original out-of-date thread you posted it to. You'll get more and better replies this way. -lrprn)

...we really want to file chapter 7, ... My husband is a owner operator (truck driver owns tractor tractor). The truck is probably worth $20,000 ( we don't owe any money on it, we have the title). My question is, could we file chapter 7, under this rule: File Chapter 7 and redeem the asset from the trustee (i.e. buy the asset back from the trustee.) Yes, it's possible if an asset can't be completely protected with your state's exemptions to buy it back from your trustee, especially since it's your husband's livelihood. If you plan to use a lawyer to file your Ch 7 (recommended in your situation), then he/she can help you sort out what's going to work best for your family in the long run.

Hang in there and keep asking questions. That's how we all started out on this journey. We'll help you sort things out as best we can.

You can't exempt the truck under tools of trade for the state you are in?

Has anyone ever did this before (buy an asset back from the trustee)? If so, how do you pay them, do you have to pay them all at once? Thanks again!

No but I would be careful saying the truck is worth 20K is it really in good or poor condition? where did you come up with that value? Be conservative with the value of your assets.

Has anyone ever did this before (buy an asset back from the trustee)? If so, how do you pay them, do you have to pay them all at once? Thanks again!If the dollars to pay are significant (and they typically are in this situation), then the trustee arranges for a payment plan and the filer sends the payment to the trustee at the agreed interval until the sum is paid in full. Your case stays open until the payments end.

Has anyone ever did this before (buy an asset back from the trustee)? If so, how do you pay them, do you have to pay them all at once? Thanks again!

Yes; 'Hub and I are currently doing so. This is how it will happen--at least for us it did. Your state and district may be different:

We recieved a notice from the BK Court that the trustee had put in a motion to have an auction to sell our non-exempt property--which was listed--to the highest bidder on thus and such date. In the same paperwork was a recommendation from the trustee to allow us to purchase our own property back from the BK estate--at a discounted rate.

This notice went out to all the creditors, but the trustee truly did not expect any objections, because our monthly payments to the trustee were to commence in about 10 days from the date of the order. We were to pay $450.00 a month to the trustee for one year. This will be over and done with, on April 1, 2009.

At about the same time, the trustee via the court, sent out a notice that he was 'Abandoning Interest' in certain Real Property, and our three automobiles as being "too old, or else fully encumbered" as in loans, homestead exemption, life estate, and simply too old to bother with.

I hope this helps answer your question. Good luck! :)


PS: Keep asking the questions. That is what we are here for. :)

You may be also to exempt it based on other exemptions. If you're letting your house go and not claiming your homestead exemption, that may increase the amount of your Wildcard or other exemptions which could possibly cover the truck as well.