Two Auto's in Chapter 7?

[Mark80]

I highly doubt I will get to do a Chapter 7, I really hope by some stroke of luck I could get in one but I doubt it. Anyhow if you owe pretty much up to the value on both your autos can you keep both if you file a chapter 7? My wife and I both need a car, and I just picked up a new one since my old one died. Do I need to wait awhile before filing if I do qualify for chapter 7 to let this car loan age a few months?

Thanks

[laurannm]

Yep, you can keep your cars. The only time you may not able to keep them in a Ch7 would be if you had equity in them and not enough exemptions to cover the equity. if you don't, then the trustee can claim them and sell them for the creditors.

There are some different opinions as to the timing of a car. Some trustees may question the timing if you purchase a car on the eve of filing (although if filing a 13 it is generally recommended to make sure you have car that will last you the entire 5 years). To be on the safe side I would purchase a reasonable car (nothing outrageously expensive or outlandish) and then make at least 2-3 payments on it before filing. Your attorney though would be the best person to ask as how best to proceed

[Mark80]

Thanks Lauran!