2 cars in CH7

[GreenInkOnPaper]

Hey peeps-

DH has two cars:
1. 2003 Ford Focus. Balance is 7.5K, KBB is 5.5K, so 2K upside down. Currently parked because the serpentine belt broke, and it needs an AC compresser.
2. 2002 GMC Envoy. Parents gave it to him a few months ago, as he paid for it through payroll deductions. So, no money owed on it. Has over 100K miles on it, but runs and looks pretty good.
I have found auto deductions for Oklahoma listed as 2K and 7.5K (?)
On a CH 7, can/should he reaffirm the Focus? Will he be able to keep the Envoy?
He is filing in 6 months and we will continue the payments on the Focus.
Thoughts?

Thanks in advance!!!

[keepmine]

What is the Envoy worth and is it titled in jis name?
I don't think I'd reaffirm a car that you can't afford to repair.

[justbroke]

The exemptions are on the EQUITY in the vehicle. You have no Equity in the Focus... so you may think of getting rid of it since it needs some $$$ in repairs.

You can only apply the $7.5K to the equity in the other vehicle (the Envoy) since it's worth about that.

As for the Focus... it's going to be interesting. If you get it fixed and decide to keep it (better gas mileage), then keep up the payments. If you're not keeping the Focus, then stop the payments... it's wasted money.

[GreenInkOnPaper]

"As for the Focus... it's going to be interesting. If you get it fixed and decide to keep it (better gas mileage), then keep up the payments. If you're not keeping the Focus, then stop the payments... it's wasted money."

I was just thinking the payment was a good use of expendable income. In a perfect world, I would sell the Envoy, repair and pay off a good chunk of the Focus and leave it at that. But, man like truck.Man no like Focus stationwagon!

[Cali]

I would keep the Envoy and get rid of the Focus.

[GreenInkOnPaper]

Getting rid of the Focus means a repo. Is that what you are saying?

[Cali]

If you at the point of filing BK, I don't think a repo would matter.

I also think if you can't afford to get it fixed, then you shouldn't keep it.

Getting rid of the Focus means a repo. Is that what you are saying?

[justbroke]

I was just thinking the payment was a good use of expendable income. In a perfect world, I would sell the Envoy, repair and pay off a good chunk of the Focus and leave it at that. But, man like truck.Man no like Focus stationwagon!

No income is expendable, but it is disposable. If you have some extra, I can PM you my address... just joking!

In any event, we want you to a) be financially secure, b) have a running vehicle, and c) get through a BK unscathed.

Actually, for now, you may want to keep the Focus until filing, so that the payments counts towards your expenses. (This is where pre-Bankruptcy Planning comes in handy.)

In the long term, keeping the dying Focus (I think they have a shelf-life of 5-10 years anyhow), may just drain you of more hard-earned "disposable" cash. You may want to get a new car... as now is the perfect time (just before filing BK).

So many decisions, I know this must keep you up all night. A good BK lawyer who will help you "plan" (prepare) for BK is probably your best bet right now. I'm sure your "expendable" income could be better served on a newer car???

[GreenInkOnPaper]

If you at the point of filing BK, I don't think a repo would matter.

I also think if you can't afford to get it fixed, then you shouldn't keep it.

Just wanted to clarify that we couldn't sell it, as he's upside down on the loan. I never said we couldn't afford to fix it...I have a Jeep and he's got the Envoy.

[GreenInkOnPaper]

No income is expendable, but it is disposable. If you have some extra, I can PM you my address... just joking!

In any event, we want you to a) be financially secure, b) have a running vehicle, and c) get through a BK unscathed.

Actually, for now, you may want to keep the Focus until filing, so that the payments counts towards your expenses. (This is where pre-Bankruptcy Planning comes in handy.)

In the long term, keeping the dying Focus (I think they have a shelf-life of 5-10 years anyhow), may just drain you of more hard-earned "disposable" cash. You may want to get a new car... as now is the perfect time (just before filing BK).

So many decisions, I know this must keep you up all night. A good BK lawyer who will help you "plan" (prepare) for BK is probably your best bet right now. I'm sure your "expendable" income could be better served on a newer car???

Sorry - was listening to the radio and the word expendable was being used repeatedly. I will watch my p's a q's from now on.

While we would love to get a new car, I doubt that he could get a loan anywhere...and it doesn't seem prudent when the Envoy is such a good vehicle. It's a whopping 6-block drive to work.

Thanks for the input. I'm just trying to get as many ducks in a row as possible before hiring that lawyer.

[justbroke]

You have nothing to be sorry for. I was just joking with the use of that word.

If the gasoline pricing and distance to work is of no consequence, then I would personally get rid of the Focus. It's an opportunity to shed $7.5K in debt ($2K in real debt).

When you get out of your Chapter 7, you may think about trading the Envoy and getting another fuel efficient vehicle. It will be up to you. If you're comfortable with the reliability of the Envoy -- and the gas mileage -- then stay with that vehicle.

The main reason for keeping the Envoy is the equity in it is real money!

[TEW]

I would not reaffirm the Focus if you decide you want to keep it just ride it through and turn in after the discharge if you don’t want it anymore you may need it for your means test. What until you talk to your laywer.

[GreenInkOnPaper]

Thanks! That's news I can use!

[Cali]

Your OP only mentioned 2 vehicles, so there is no way I would know you had the Jeep. That is why I said if you can't afford to get the Focus fixed, since it is sitting, to let it go.

Just wanted to clarify that we couldn't sell it, as he's upside down on the loan. I never said we couldn't afford to fix it...I have a Jeep and he's got the Envoy.

[GreenInkOnPaper]

Your OP only mentioned 2 vehicles, so there is no way I would know you had the Jeep. That is why I said if you can't afford to get the Focus fixed, since it is sitting, to let it go.

Didn't mention the Jeep as it is of no consequence to my OP. He is filing alone. I own the Jeep, he owns the Focus and Envoy. I was just pondering the wisdom of keeping up with the payments on the Focus as it does "help" with the disposable income situation. Just wanting to help him do the smartest and most beneficial Bk he can. I really appreciate everyone's input! Thanks~