How To List Auto On Schedule B

[ranrenn]

Sorry if I am asking a question that is answered elsewhere, but I haven't found the answer. First, we are very thankful for BK Forum's valuable assets, people who have walked this walk as well! We just filed an emergency filing last week to stop a creditor from suing us. I am filing pro se and have been using Nolo's Chapter 7 guide. We are in VA Western District and have a question about how to list auto loan in item 25 with about $3500 in equity and would like to reaffirm the up to date loan with the creditor. Specifically do I list the current value as the $3500 amount or total Kelly Blue Book fair retail amount of $7500? I assume (which we know what that means) that "current value of debtor's interest" is the positive equity amount before "any secured claim or exemption". Am I correct?

[JoeBankrupt33]

This is exactly what I listed on schedule B

Description
2001 Ford Windstar LX 105k miles - $1500
2001 Ford Focus ZX3 110k miles - $3500

CURRENT VALUE OF DEBTOR’S INTEREST IN PROPERTY, WITHOUT DEDUCTING ANY SECURED CLAIM OR EXEMPTION
$5000

These amounts on schedule B are the fair market value, not the equity. For the fair market value, I listed a private party sale with deductions for condition. You would never be able to sell your car for the retail price, and the trustee couldn't either.

On schedule C, however, you list your equity in the last column without subtracting your exemption which is listed to the left.

[JoeBankrupt33]

Oops, on schedule C, you don't put equity either - simply the value of the car. But for the exemption, you only need to exempt your equity. In my case, the equity on the Focus was negative, so I put down a nominal exemption of $10, which indicated that I intended to exempt the car. Had I put down $0, they could potentially claim that I did not intend to exempt it.

[ranrenn]

Thanks Joe for your response. That is what I finally determined from reading the confusing description on the schedule B. In my case we have a 2005 Ford Freestar valued at "fair" KBB retail of $7385, owe $3941 giving us equity of almost $3500. Our state automobile exemption is $2000 but we have plenty of wildcard exemption left after everything else is taken care of. I have listed the $3500 as exemption on schedule C and on schedule D I listed total value then put amount owed in amount of claim then listed 0 for unsecured portion. Does that sound right? Thanks for any additional guidance Joe.

[JoeBankrupt33]

That does sound right. The unsecured portion is only if you are upside down on the car, so it is 0 in your case. I would just make sure on schedule C, under "specify law providing each exemption" that you list both the vehicle exemption and the wild card. You may already know this, so just ignore the blabbering.

[ranrenn]

Thanks again Joe for the help. Yea, I did use the wildcard as well as auto exemption on schedule C. Just finished the gargantuan mountain of paperwork, now checking, checking again then rechecking. I guess worse case the trustee will tell me to correct something if it is in error. Well, there are other potential worse scenarios I'm sure. Creditors meeting is 10/20/09 so hope all goes well. I had already filed emergency filing on 9/24/09 so everything else needs to be in by 10/08/09. Thought I would explain why I have creditors meeting already scheduled.

[Patch]

Oops, on schedule C, you don't put equity either - simply the value of the car. But for the exemption, you only need to exempt your equity. In my case, the equity on the Focus was negative, so I put down a nominal exemption of $10, which indicated that I intended to exempt the car. Had I put down $0, they could potentially claim that I did not intend to exempt it.

so when you owe more than what the car is worth,on schedule C you put a very low amount to exempt it?
but why exempt something that you don't have any equity in ?

sorry ,if this is a dumb question...

we had to reschedule our 341 meeting,and have to amend our schedule C (the trustee 's staffer wanted us to put the value of our vehicle at $1,and I couldn't understand why and also add $25 worth of cd's,I know weird,but that's what she wants us to do...)