Repossession of exempt asset

[Smalls]

I am upside down in my car for about 5-7k. I expect to file BK soon.

I am thinking about surrendering this car (allowing repossession) and paying cash for an older car. (possibly with similar miles on the odo)

Funded by selling of non-exempt asset.



Advice?

Thank you.



*edit
This car is less than 2.1/2 years old. So I would HAVE to pay for it in full if I wanted to keep it.

[AngelinaCatHub]

Smalls: I think you may have a problem in that all of your estate belongs to the Trustee when you file. If you can get money from exempt, did you need it? What I would do right now unless you have filed already, is sell things that are non-exempt and exempt to get a car that falls within the non-exempt status. In our state, FL, it is 1K.

You are allowed to sell non-exempt stuff (If it is not secured) and purchase exempt stuff like food, shelter, blankets, etc.

Be real careful. A good investment is the Chapter 7 book for 17 bucks pdf download from Nolo.com. 'Hub

[Smalls]

The car I have now, is exempt. In my area, up to $20k!!!

I cannot get money from this car, it might get repossessed.

Why get a car that is non-exempt?

Basically, I'm just wanting to get out of the car payment. If I sell my recreational vehicle to purchase a used car, it'll be paid off = no payment.

Then.
My current vehicle would get repossessed.

[AngelinaCatHub]

Whatever works for you. We are in FL and that is what we have. You probably are right in that a recreational vehicle is probably an asset and you would lose it anyway. Good luck. 'Hub

[Smalls]

ok....

if a car is paid off,
but it is exempt

does it still become asset of the BK trustee?

[AngelinaCatHub]

ok....

if a car is paid off,
but it is exempt

does it still become asset of the BK trustee?

YES! Everything is.

[Smalls]

Ok, sorry, I'm confused.

Either way, my car will be exempt from BK

But with the paid off car, I won't have a payment to continue.

Am I missing something?

[AngelinaCatHub]

What state are you in? There is a sticky on the home page about state exemptions. For example: we have a paid off 92 Pontiac. Kelly Blue Book value $800. You have a paid for Jaguar Kelly Blue book 35K. That is not exempt. My car in my state is. But in my state the exemption is 1K. Hope this helps. ‘Hub

[TEW]

only The part over the exemtion is not exempt. is like you say 35 dna and the exemption is 20K 15 K is not exempt trustee can take it.

[Smalls]

The car exemption in KS is 20k

My retail value of my car is 10k

I owe 14 k.

My car is exempt.

[Smalls]

Would I just be better off to sell the recreational vehicle and pay that towards the car?

[AngelinaCatHub]

Would I just be better off to sell the recreational vehicle and pay that towards the car?

YES!. I now understand and you are fine in your state. Up to TEW I understand the difference in that I am paying $5400 for my own stuff. Good fortune to you and I shall be checking in with you for how you are doing. I think you will be just fine. 'Hub