Second auto question

[DeadBroke]

I have a second auto thats worth about $600-$800, according to Ohio exemption laws it says:
one thousand dollars ($1,000.00) in one automobile
I have another auto that I am making payments on, bank still owns it, no equity in it,and I am current. I talked to the paralegal at the law firm today when I was turning in my paperwork and asked her about it and she said that I would use my $1000 towards the second car, that even if I had equity in the first car I could not use the $1000 towards it because I dont own it. I hope this is right.

[sunshine08]

I am not sure about that. We were told that we could only have up to so much equity in each vehicle or we would have to come up with the difference. Maybe someone has a better understanding of it.
But under the conditions you stated you should be ok, unless you are filing by yourself.

[DeadBroke]

I am filing by myself (single).

[StaciMM]

Your exemptions are the same, while you file with an attorney or pro se. You mentioned you have no equity in the financed vehicle, which should mean you owe more than its worth. On the paperwork, this will be listed as a secured debt. The forms will ask for its value & its financed amount. Its not an asset if you owe more than its worth.

The 2nd vehicle, worth $600-800, would be listed as an asset with the appropriate exemption.

[DeadBroke]

Your exemptions are the same, while you file with an attorney or pro se. You mentioned you have no equity in the financed vehicle, which should mean you owe more than its worth. On the paperwork, this will be listed as a secured debt. The forms will ask for its value & its financed amount. Its not an asset if you owe more than its worth.

The 2nd vehicle, worth $600-800, would be listed as an asset with the appropriate exemption.

I think you missed your calling you should be lawyer, I believe that is what the paralegal was basically telling me.

[HHM]

If the 1st vehicle has no equity, you do not need to use the Automobile Exemption on that vehicle, so you are free to use it on the second vehicle.

Strictly speaking, the 1st vehicle IS AN ASSET, and it has a certain market value, but on your personal balance sheet it has negative value (you owe more than it is worth), so it goes on your schedule of personal property. There is a difference between being an "owner" and being a "lien holder". You "own" the car, but the bank has a "lien" on the car, so it is YOUR asset, but it has no value to you.

In a leasing situation, you DO NOT OWN the car, in a lease, the leasing company owns the car and merely lets you rent it, so to speak.

[DeadBroke]

If the 1st vehicle has no equity, you do not need to use the Automobile Exemption on that vehicle, so you are free to use it on the second vehicle.

Strictly speaking, the 1st vehicle IS AN ASSET, and it has a certain market value, but on your personal balance sheet it has negative value (you owe more than it is worth), so it goes on your schedule of personal property. There is a difference between being an "owner" and being a "lien holder". You "own" the car, but the bank has a "lien" on the car, so it is YOUR asset, but it has no value to you.

In a leasing situation, you DO NOT OWN the car, in a lease, the leasing company owns the car and merely lets you rent it, so to speak.

Thanks for the clarification HHM, keeping my second car was a major concern with me.