Property questions?

[Ddb2008]

My husband is thinking about filing chapter 7. But we don’t want to lose our vehicles or utv.

2011 Chevy equinox - rebuilt title, motor and alignment issues, no air bags. Own outright. Kbb says $4000

2016 Chevy Silverado - pay $745 monthly. Owe $34k. Says it’s worth between 27 to 30.

2018 can am commander. Pay $383 monthly. Owe $12500. Says it’s worth $9k.

other pieces of property include an utility trailer, 3 guns (handgun, ar15, and a cheap 22 hunting rifle), and my wedding rings. Other than that, it’s cheap TVs and game system for kids. We don’t own a house and we pay $950 rent.

we got ourself in personal loan (not with the vehicles), cc, and medical bill debt. I
lost both of my jobs in June. I’ve had to stop paying the credit cards two months ago as we can’t afford to pay it. His income is $3400 a month. I make around $600 a month for contract work.

What will be the process of dealing with the truck and can am while paying on them? Will the trustee sell those even having negative equity? I’m sure he would have to sell at least the trailer.

ive never dealt with this and I never thought I would ever been this low. Any guidance would be great. Thanks in advance.

[justbroke]

Yes, the Trustee can liquidate them if they believe there's enough equity to cover the expense. You will likely use the federal exemption scheme and it will really depend on the value of everything you own. You get $4,000 for one vehicle (but you each can use that $4,000 basically doubling it to $4,000 on one vehicle and $4,000 on another). You get pretty good exemptions for personal property (where each item is < about $625 with a total of no more than $13,400).

You will need to make a spreadsheet and list the equity for all your property, and then see if the federal exemption scheme (which you get to double if you're filing together) will cover all that equity. The unused homestead exemption is $12,575 per debtor.

Bottom line is that you still need to protect equity even on property that still has a loan with a balance. It's the equity that the Trustee is looking at.