C7 and own cars (also above median...)

[HereInOhio]

Yeah....can it get any worse?

We did fail the means test. But we own our cars outright (mine since 2002 and DHs since 2007). Mine is a 2002 Jeep Liberty (worth about $7000) and DHs is a 2006 Chrysler Town and Country (worth about $10,000 or a little less because of high mileage).

My fear is losing the cars. I have no idea what we would do then.

I've read about people on here who have sold cars or bought new ones after filing BK. Is that a smart idea to do that?

Any suggestions? We aren't sure when we are going to file. Haven't even met with a lawyer yet. DH says he doesn't want to meet with one until we are going to file. He said that if you meet with one early, you are basically saying that you will be filing (even if it's months down the road) and that it can pose problems paying (or not paying) on debts.

[justplaintired]

Not sure on the cars, you have to be able to exempt them and you need to find out if you can, best bet meet with an attorney. I don't know about timing there, but honestly it would atleast let you know what you can and can't do.

Your DH probably is like us, if you meet with the attorney it's like admitting your filing which it sounds like you want to, so, bite the bullet and set up some free consults, it's not a crime to be prepared unless ofcourse you transfer titles or something like that. An attorney can give you free legal advice and meet with more then one, you need to know what an attorney will cost you, what chapter you can file and so on and so on.

[HHM]

What is your states auto exemption and does your state allow any sort of wild card exemption.

In any event, the only way to protect an asset in BK is to exempt it. If you cannot exempt the equity, you will need to figure out a way to pay the trustee the value of the non-exempt equity.

Bigger picture, however, if you failed the means test and have non-exempt equity in your cars, you are probably not going to be able to get ch7 anyway. How far over the median are you, and do you have disposible monthly income?

The meeting with the attorney thing is a non-issue. The only time that becomes a problem is if you (1) meet with an attorney, (2) after that meeting, go buy a $5,000 plasma TV on your visa (3) and file BK 4 months later.

[HereInOhio]

What is your states auto exemption and does your state allow any sort of wild card exemption.
.

When I look on a website (one that I got off of here somewhere!), it says "Motor Vehicle to $1000" and for wildcard it's "$400 of any property"

I'm still trying to figure out what that means. So does that mean that if I have a car that is worth MORE then $1000, it either gets taken from me or I have to pay the difference??

[HHM]

I'm still trying to figure out what that means. So does that mean that if I have a car that is worth MORE then $1000, it either gets taken from me or I have to pay the difference??

Bad news answer...YES.