Can I trade my car in before my 341?

[AMISLANDER]

I know I've been sitting on the fence with this one but I'm either going to Toyota or Carmax to get an appraisal on my vehicle this weekend. If it's worth say (2000 4Runner w/90Kmiles) between 5K and 7K, can I trade it in of something around $15K?

I'm in FL with the $1k exemption on vehicles & mine is currently paid off.

[TatteredInTexas]

Hmm... seems like you could be treading on thin ice if you were to do that prior to discharge. It may be ok (dunno), but I would sure be worried about what the Trustee would ask or say about the matter at the 341 hearing.

Best,
Ronnie
TatteredInTexas

[StaciMM]

If you're trading a vehicle that needs alot of work in for something reliable, you'll be fine. The trustee would complain if it was an outrageous vehicle, so avoid luxury cars. (There have been plenty of posts from people who financed transportation prior to BK w/ no issues. Reliable transportation is a reasonable expense.)

Edited to add:

If you try to do this after filing, most likely, no one will touch you. Before filing you'll have better chances.

[soldout]

Hmm... seems like you could be treading on thin ice if you were to do that prior to discharge. It may be ok (dunno), but I would sure be worried about what the Trustee would ask or say about the matter at the 341 hearing.

Best,
Ronnie
TatteredInTexas

I agree with Tattered. If your worried that he might take the 4Runner and distribute the asset to the creditors, definitely trading it for another vehicle would throw a red flag. Plus that would mean you would be getting credit during a B/K..and that is definitely a NO NO... My best advice is to have your ducks inline at the 341 hearing, be nice, confident, and TRUE. The trustee is more than likely going to be very busy around that time and if your assets dont amount to much, he probably wont waste his time and in the end it will state on the discharge that all assest have been abandonded by the court...yadayadayada...or something like that... Good luck man...

[AMISLANDER]

It's the my only asset!

I agree with Tattered. If your worried that he might take the 4Runner and distribute the asset to the creditors, definitely trading it for another vehicle would throw a red flag. Plus that would mean you would be getting credit during a B/K..and that is definitely a NO NO... My best advice is to have your ducks inline at the 341 hearing, be nice, confident, and TRUE. The trustee is more than likely going to be very busy around that time and if your assets dont amount to much, he probably wont waste his time and in the end it will state on the discharge that all assest have been abandonded by the court...yadayadayada...or something like that... Good luck man...

My only asset is the 2004Runner...it needs two new catalytic converters ($2,500) plus $500 in hose work, new tires & new rear bumper (matching bangs on both sides )...so I was thinking of trading it in on something that gets better gas mileage...costs me $40 to fill the tank.

[soldout]

My only asset is the 2004Runner...it needs two new catalytic converters ($2,500) plus $500 in hose work, new tires & new rear bumper (matching bangs on both sides )...so I was thinking of trading it in on something that gets better gas mileage...costs me $40 to fill the tank.

OH!!! I understand where your coming from now...(correct me if i am wrong) But you will still have to be approved a line of credit if you trade it in? And from what I understand (my attorney)...you absolutely should not get any type of credit while going through the B/K until it is discharged or it may end up getting dissmissed and then you would be falling under the new law or having it changed to a ch. 13...My advice would be to find you a Geo Metro Ford Escort, or a moped if your close to work, until your B/K is over with, and then, if you get to keep your 4Runner, trade it in and you will be in the clear...More than likely he wont take your 4runner...Its too old and damaged...

~soldout~

[AMISLANDER]

Major backup on filings...

I called my lawyer; he's filing me next week...but I asked him, again about the car deal & he said I'd have to get a $40K vehicle or forget about it....my mom has a lien on the title (I had borrowed $ from her last October) so he's going to include that on my filing...guess I'll see what Carmax & Toyota can do for me in terms of a low figure...I probably won't get this "341" meeting until November or later due to the mad rush...my work is 9 miles from my home...I was thinking about a bike...easier to get from island to island as the tourists start coming back.....our traffic jams are terrible...

[soldout]

I called my lawyer; he's filing me next week...but I asked him, again about the car deal & he said I'd have to get a $40K vehicle or forget about it....my mom has a lien on the title (I had borrowed $ from her last October) so he's going to include that on my filing...guess I'll see what Carmax & Toyota can do for me in terms of a low figure...I probably won't get this "341" meeting until November or later due to the mad rush...my work is 9 miles from my home...I was thinking about a bike...easier to get from island to island as the tourists start coming back.....our traffic jams are terrible...

Since your mom has the lien...then your mom would have to be the one to repo it..LOL The trustee wont be able to touch that vehicle since its not in your name...The only thing that can go on your B/K is how much you owe her...Secured or not...Im sure your mom wont repo it from you huh?...Anyways...You must live in the FL Keys right? 9 miles...Hell, get you an old used moped...You could probably find one around a couple hundred dollars..And they usually get around 60-80 miles to the gallon...You would save energy and probably only spend $10 a week for gas Or ride you a bike and get in good shape...LOL...I wish i was only 9mi from work cause i would ride a bicycle... Im 35mi right now, talk about a sweaty day at work...

~soldout~