SC car question, got answers?

[swiminindebt]

Another car question for everyone. I live in SC, where you can only use state exemptions. The exemption for an auto is $1200. I have a mid 90's SUV with 141k miles on it that kbb trade-in is $1650. My wife's vehicle is in my name also, but we will turn this vehicle in(upside down), what are the chances of them taking my old vehicle, too? Would they take my only other ride, with kids and a job? If they did, I'd have a long walk to work every day!!LOL..any help would be greatly appreciated..thanks all

[LinSC]

We filed in SC too. If you're filing jointly with your wife, you get the $1200 vehicle exemption times 2, $2,400, to use for all vehicles. Since you're wife's car is upside down, you have no equity in it. If you're car is only worth $1650, the $2400 exemption should cover it ... I'm not sure if both you and your wife's name needs to be on the title though. Check with your attorney on that one.

Plus, we had a little equity (about $1,000) in my husband's vehicle but the trustee abandoned it. It's up to their discretion. Splitting $1,000 among several creditors really isn't worth the trouble.

[swiminindebt]

I am filing alone. My wife's credit was "challenged" when we got married, so everything is in my name. Her credit score is back around the mid 600's, so I see no reason for her to file. I have no equity in house because of 1st and 2nd. The only thing that worries me is the fact that I could possibly lose our only means of transportation! I would like to keep my bike as my vehicle because it gets great gas mileage and let my wife have the suv, but I don't see anyway possible for this. The bike is paid for and has a bullseye painted on it. I appreciate your advice. Anything else that you can help me with about SC laws or what to expect, I would be glad to hear...thanks again

[LinSC]

I can see why your attorney suggested you sell the bike. Your equity exemption could be applied to your SUV leaving you no exemption for the bike. You have to decide if you're willing to risk your transportation especially if you've got significant equity in it since the trustee might take it if you do. I completely understand and I'm sure you have more equity than just $1200 for the Harley. We had the same decision to make. My husband really wanted to keep his truck. But realistically, we knew and the attorney stated that the trustee would more than likely take it because we had about $4000 in equity after the exemption since it was paid off. We had no other option but to sell it prior to filing. We used the money CarMax gave us and bought a VERY used Jeep Cherokee for around $3500 and the KBB value was at $3000. We spent the remaining money on living expenses. The trustee required us to send the original title on the Jeep to him prior to the 341 meeting. We were worried that he would take it too. However, he abandoned the equity and ended up giving us back our title at the 341 meeting.

So, my husband doesn't have his beloved truck anymore but he still has a working vehicle that's completely paid-off and now we're working on rebuilding our credit. It's so much better than it was earlier in the year. You can always get another Harley. Think of it this way, if it's worth $10,000 (just a figure, I have no clue what they go for) is $10,000 worth getting rid of your total debt that will be discharged in the bankruptcy? If you really want to keep it you can file Ch 13 but you'll be stuck with payment for 3 - 5 years which might be more than the Harley is worth. Depending on your debt load, $10,000 might be a small price to clear your debt. However, that has be your decision.

If you do decide to sell your bike before filing, just keep all your paperwork regarding the sale and document everything you purchase with the proceeds. If you purchase another vehicle, try to find one that has a book value (trade-in value) close to the purchase price and keep all that information as well. It's better to send all that information to the trustee since it's inevitable that they will ask for it ... trust me they will!

[swiminindebt]

Thanks..getting rid of the bike is the least of my worries. If I can trade it for peace of mind after this is over, it's worth every penny! As for selling it and buying another vehicle for my wife, my attorney advised against this. She said that it would look like I was trying to "scam" by selling something in my name and purchasing another cheap vehicle with the money in wife's name or jointly. It would be nice if I cold get a cheap second car before the filing because we have kids and need two cars, but if we have to have one, then so be it . I don't want to raise any red flags that would hinder my process in anyway. If I could sell the bike, within a reasonable amount of the FMV price, then it would help us get by just on bills till this is over. If they take the rest of the money, that's fine. I just want to make this as simple as possible...thanks for your help