A car is worth much more than the remaining loan ($10K vs. $3K). What is the new rule? I have to pay the current value of the car in order to get it back even if I use exemptions for it? This seems like a strange rule but it seems like this is what everyone has to do but most people end up better off becuse they owe more than the car is worth.
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People usually owe more than their car is worth because they buy a car with a poor resale value, take out a loan for too long, or pay a high interest rate. There's nothing strange, unfair, or wrong about this.
Buy a cheaper car with good value, take out a small loan for a short term, and pay a low interest rate, and you won't find yourself in this situation. -
You're saying you owe $3000 and the car is worth $10000? To keep it, you should be able to keep paying as your agreement requires. A bigger issue is what is your state's vehicle exemption? Most, from what I've seen, range from $1,000 to $2,500. Make sure that it really IS worth $10000, as you're going to probably owe the trustee for your non exempt equity.
The new regulation about car values in BK mainly apply to situation where you are upside down-as that is typically the case.Most of my information is from personal experience or HOURS and HOURS of online research. When you're searching online, keep in mind there is no guarantee that the info is completely up to date, and your situation is unique from anyone else's. Do your homework, and consult with an attorney so you can make an informed decision.Comment
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Welcome back, Lightning.Most of my information is from personal experience or HOURS and HOURS of online research. When you're searching online, keep in mind there is no guarantee that the info is completely up to date, and your situation is unique from anyone else's. Do your homework, and consult with an attorney so you can make an informed decision.Comment
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I guarantee that the OP doesn't have $7,000 in equity in a car. bkinfoseeker surely owes $10,000 for a $3,000 car.Comment
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No, owe 3K for 10K car. I think the car may be worth more if you use halfway between trade-in and retail. Federal has nearly 10K of wild-card exemption with no home equity.Comment
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Congratulations.
You're the first broke person I've met who has $7,000 in equity in a car.
I wish I could attend your 341 so I could hear the story you plan to tell to the trustee.Comment
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He doesn't need to tell a 'story'. His exemptions cover it.
If you're in the last 12-18 months of paying for a car, you should have equity at that point beyond your loan balance. Some vehicles retain values better than others after all.
Originally posted by LightningMost of my information is from personal experience or HOURS and HOURS of online research. When you're searching online, keep in mind there is no guarantee that the info is completely up to date, and your situation is unique from anyone else's. Do your homework, and consult with an attorney so you can make an informed decision.Comment
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How do you exactly find out the value the Trustee uses to find the value of your vehicle. Does he use nada? trade in value or retail. I have a vehicle paid off and am having a problem with my Trustee wanting me to pay more than the vehicle is worth.Comment
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