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    Keeping my car?

    Hello,

    I hope this is the proper forum to ask this question.

    I may have to file ch 7 BK; my income is quite low and I don't have any real assets except my car.

    The car is about 6 years old, a Toyota, and when I check NADA I get about $10,000 in value. By the time I file BK, it will have no more than $3,000 owing as far as I can tell, and I think I can pay for that.

    Will they take the car to pay my other creditors? And does it matter that most of the creditors are because of marriage accounts, and I don't have any of the assets that were purchased with the money owed to the creditors? It is all in the possession of my soon-to-be-ex husband (who makes about 6x as much as I do, but is pretty much garnish-proof).

    Thanks for any info!

    Serendipity

    #2
    Depending on what state you are in you may be able to use exemptions to cover you're car.
    Chp 7 Filled 2-21-08
    341 Hearing 3-24-08

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      #3
      I live in Florida.

      I'm still surprised the car is showing worth so much. It's about 6 years old now. It's a Toyota Camry, and I paid about $21,000 for it.

      Thanks if anyone has any information. The car needs work, but I really can't afford to lose it.

      Serendipity

      Comment


        #4


        You may want to view the thread above or research Florida exemptions online. It appears you can add 4K of the homestead to you're car making 5K covered. If the car is worth 10K and you owe 3K then that still leaves 2K of value for the trustee to come after if he wants. Hopefully someone else will chime in.
        Chp 7 Filled 2-21-08
        341 Hearing 3-24-08

        Comment


          #5
          The FL exemptions protect $1000 equity in a motor vehicle. However, in June 2007 the FL legislature passed a new law that allowed FL residents filing bankruptcy who did not own a home to have a $4000 "wildcard" exemption which will help you immensely!

          Read this law blog post regarding the $1000 FL property exemption plus the $4000 "no-homestead" FL exemption by a well-respected Orlando bankruptcy attorney Jonathan Alper - http://www.bankruptcyorlando.com/200...reting-fl.html

          With $1000 + $4000, that means you can protect $5K of equity in your car and there isn't anything the trustee can do. Plan ahead so that when you file if you subtract what you owe from the true value of the car and it's $4999 or less, your car will be safe.
          Last edited by lrprn; 04-14-2008, 08:53 AM.
          I am not a lawyer and this is not legal advice nor a statement of the law - only a lawyer can provide those.

          06/01/06 - Filed Ch 13
          06/28/06 - 341 Meeting
          07/18/06 - Confirmation Hearing - not confirmed, 3 objections
          10/05/06 - Hearing to resolve 2 trustee objections
          01/24/07 - Judge dismisses mortgage company objection
          09/27/07 - Confirmed at last!
          06/10/11 - Trustee confirms all payments made
          08/10/11 - DISCHARGED !

          10/02/11 - CASE CLOSED
          Countdown: 60 months paid, 0 months to go

          Comment


            #6
            Thanks all,

            The Kelley Blue Book is a lot lower than NADA ... for my car between $6,400 and $7,400. Besides, it needs work on the brakes, steering, and the engine is idling funny ... sigh.

            I was hoping to see if I HAD to file, but I'm pretty sure I will need to. I just did my taxes, and my income is less than I realized even, after expenses.

            If I can add $1K plus $4K plus the amount owing, it may be ok. I need to see if I can get the total owing (I have NO access to financial paperwork and haven't had for years because of this divorce, which is part of why I am in this mess) and decide now what to do.

            Still, divorce will be finalized in a few months. I may need to wait until afterward to file. I'm not sure of the ins and outs of it yet.

            Thanks SO much for the info!

            Serendipity

            Comment

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