Filing for Chapter 7, Can I claim my paid off car as exempt??

[GoldenGirly82]

Hi there. I am filling for Chapter 7 in Illinois pro se.

I have $12,000 in unsecured debts.

I have no assets except for a 1994 Chevrolet Camaro V6 with light body damage. Kelly Blue Book says it's fair market value is $2,750.00.

My question is, In illinois, you are exempt from a motor vehicle up to $1200 in equity. You are also allowed a wild card exemption from any personal property up to $2,000. I believe that these two exemptions can be added together, creating the $3,200 dollar exemption on my car.
Would this allow me to claim my car as exempt and not have to worry about the court taking it away from me to pay off creditors?

Would a better alternative be to take a loan out of the car for $2500.00 before I file?
Because I actually do owe my boyfriends father $2500.00 for the car. He gave it to me and let me switch the title into my name so I could get a loan for $2500 and use the car as my collateral so I can pay him the $2500.00 for the car.

My question is would it be wise to take that loan a week before filing? Or can I claim it as exempt, then after the BK is over, take out the loan. I am almost done filling out my papers, this is the only part I am stuck on! Any help would be truly appreciated. Thank you!

Golden Girly 82

[HHM]

If you don't need the wild card exemption for anything else, use it for the car...why take on new credit obligations if you don't have to.

You may want to opt for the federal exemption, because I think its higher (but I don't have it in front of me)

[GoldenGirly82]

Thanks for your advice and DARN!!!

I would have been in the clear if I could have used the federal exemption.

Illinois does not allow you to use federal exemptions.

Ok, I need some guidance if someone can help me out.

If my car is worth $2500.00 and paid off and I have the title for it in my own name and I want to keep my car.

*Illinois Motor Vehicle Exemption is equity up to $1200.00
And a wild card exemption up to $2,000 in any personal property.

I'm a little SLOW, Do I have equity in my car since I own it and it's paid off?

Can I use the both of these when I fill out my papers to claim the car as fully exempt and be confident that they won't be able to take it?

OR....should I "sell" the car to my boyfriend or just switch the title to his name?

His father told me that he is the lienholder on my car or thinks that I can use that on the forms because I will be paying him back for the car once I get a job, it was just easier to switch the title in my name right away. So if he is the lienholder, and I fill the forms out that way, will the car be safe?

I'm sorry I'm still confused on all of this. Anymore help would help so much! Thanks!!!

[HHM]

Thanks for your advice and DARN!!!

I would have been in the clear if I could have used the federal exemption.

Illinois does not allow you to use federal exemptions.

Ok, I need some guidance if someone can help me out.

If my car is worth $2500.00 and paid off and I have the title for it in my own name and I want to keep my car.

*Illinois Motor Vehicle Exemption is equity up to $1200.00
And a wild card exemption up to $2,000 in any personal property.

I'm a little SLOW, Do I have equity in my car since I own it and it's paid off?

Can I use the both of these when I fill out my papers to claim the car as fully exempt and be confident that they won't be able to take it?

OR....should I "sell" the car to my boyfriend or just switch the title to his name?

His father told me that he is the lienholder on my car or thinks that I can use that on the forms because I will be paying him back for the car once I get a job, it was just easier to switch the title in my name right away. So if he is the lienholder, and I fill the forms out that way, will the car be safe?

I'm sorry I'm still confused on all of this. Anymore help would help so much! Thanks!!!

How do you know your car is worth $2500, you can play around with the value, the value of the car is "liquidation value". If you transfer the car out of your name or take lien, and turnaround and file BK, you are asking for trouble along the lines of fraudulent transfer.

[GoldenGirly82]

I went to KBB.com and did a fair market value check on it.
I entered in the year make model and accessories and mileage plus the body damage, and it said it was worth $2500.00

[HHM]

I went to KBB.com and did a fair market value check on it.
I entered in the year make model and accessories and mileage plus the body damage, and it said it was worth $2500.00

Try using "Trade in value" at kbb.com and see what you get, don't use private party sale or suggested retail.

[GoldenGirly82]

Ok, the KBB blue book "trade in value" on my car is $1,570....

[HHM]

Use that as a gage for value instead. Honestly, its rare to get in a value war over cars, and often time the car finance company want's you to keep the car because they often lose money if they have to liquidate the car, and most unsecred creditors, and the trustee don't want to incur the cost to liquidate a car. You could probably say the car is worth as much as the exemption, $1,200 and no one would probably hassle you since trade-in value is pretty close to the exemption max.

I am a little amazed at how different the exemptions are around the nation, here in Nevada, we get $200,000 house, $15,000 car, $4,000 household, and so on.

[robivi3]

Play up the damages. An appraisal by a pro (about $75.00 - 125.00) and some unflattering pictures helped me. The laugh is that the dirtbag Trustee would "pay off creditors", hahahahahahahahahahahahahaha!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!! Like he really cares for the creditors, what a scam the trustee has!