Car paid off before filing ch 7- HELP

[wootsie]

I will be filing a ch 7 in FL soon but attorney says we have a
problem with paid off 2006 Ford F 150, my husband just had to
have it. Anyway, do I sell and get someone to carry a loan
for a newer truck? Help please, I'm losing sleep. Also, have
a judgement breathing down my neck. 30 days is up today
for interrogatories (discovery of assets). There might be a
contempt attached.

[BassBoy]

I have moved your thread to the appropiate section of the forum as it will recieve better responses here.

[wootsie]

Thanks I'm new to the forum thing.

[kiddles]

If you can't cover the truck's value with exemptions (and I'm betting not on such a new and therefore valuable truck) the trustee could potentially seize it, sell it, and pay your creditors with the proceeds. Or require you to pay the value of the truck (minus any exempted amount) to keep it.

Generally, taking on new debt (like a new truck loan) knowing you plan to file BK is a no-no, but if you plan to re-affirm the new loan, it might be OK. You should talk to your attorney about it and find out what will fly.

[genseeker]

FL is not a community property state so if only you are filing, and not your husband, and the truck is solely in his name, then it may not be an issue.

[wootsie]

The truck is paid off but does have a lienholder for protection purposes and is only titled in my husband's name. Unfornately, we were both planning on filing. It's my understanding that FL looks at all transfers within previous 2 years and could possibly
still take the truck back regardless. Any suggestions? Also, still have the judgement
breathing down my back?

[kiddles]

the "looking back at transfers" bit is looking at what you've sold or given away of real value, not what you own of value.

[DivorceRuinedMe]

Fl has a measly 1K exemption for vehicles so I think that you are going to have to surrender the truck to the trustee to sell or buy it back if you want to keep it. If you don't have a homestead to claim, I believe the asset limit is 4K though but that STILL won't help with a truck that new that's paid off.

[wootsie]

When you say buy it back is it at KBB value or other? We do have a homestead but that's going in the BK too. Not much else of value according to the atty. And do I have to have an atty or is it really a pain to file pro se?

[genseeker]

Some people can successfully file ProSe. I did our paperwork and only missed a couple creditors. I also ad to redo my homestead because when I did it the first time, it was not the exact format the state wants it.

However, we rent and only had 1 financed vehicle which we planned to surrender. No other secured debts, mostly medical related collections and credit cards.

[nazstar]

We are in the same boat in Florida. My car will be paid off before we file for Chapter 7. I am hoping that the value drops below $1000. If not, I may sell it and put it proceeds in a used car where I would have less than $1000 equity. I haven't figured that one out yet.

[AMISLANDER]

I have the answer to your question, having been through this with my paid off 2000 4Runner.

Bad move to have a paid off vehicle in FL and filing BK.

Your trustee will ask for you to surrender the truck. Being that it's a 2006 is even a sweeter deal for the trustee. Do not even attempt to transfer title at this point as they will get your for fraud.
Trustee wants that truck.

My background:

2000 4Runner (paid off with lien of over a year from a parent on the title).

Trustee made a deal with me as he was not able to come to the meeting regarding the truck.

He took my $1,600 tax return for 2005 (year I filed), which I knew was going bye-bye anyhow & I had to pay another $1,500 to keep the truck. Before the deal was struck, I had to go to Carmax and have the vehicle appraised. Trustee was hoping for a $10K value but due to mechanical issues, they gave me a $5K appraisal; trustee was not happy with that because due to the nature of repair (2 catalytic converters and the gas price increase) it wasn't going to be worth his while to take the truck after necessary repairs.

But, remember, the truck was five years old with mileage at 97,000 as well.

If I can be of any assistance, let me know!

[wootsie]

Thanks for your input. Unfornately, KBB says the truck is worth 15K, 35,000 miles Should we try to sell it or just wait? Not that I want to take on new debt but can we trade the truck in just to get payments? My husband is blaming me for this, of course, since I didn't inform him that was what I was going to do, Pay off the truck and then file 7.

[HHM]

Even if you trade it in...you still have an equity problem. That trade in value is going to be applied to the purchase of the vehicle. You would still run the risk of having too much equity in the car you pruchased even if you finance the car.

[AMISLANDER]

Thanks for your input. Unfornately, KBB says the truck is worth 15K, 35,000 miles Should we try to sell it or just wait? Not that I want to take on new debt but can we trade the truck in just to get payments? My husband is blaming me for this, of course, since I didn't inform him that was what I was going to do, Pay off the truck and then file 7.

If you sell the truck for cash, it's a paper trail and that would be cash that the trustee could seize due to the time period, I think.

Some one else can maybe better answer regarding doing a trade in. I don't have experience on that one.

OH my god, 15K and only 35K miles...damn....why did you want to pay off a vehicle and go bankrupt?

What's your debt?