question about autos

[sjh4chiefs]

I am filing chapter 7 BK this week and I have a questions about my cars. I am on the title for two vehicles being worth 6-7 thousand combined for them. I haven't gotten an appraisal yet but by kelly blue book this is the value of my cars. The appraisal should be less I hope! I live in Missouri and my lawyer said they could ask me to make payments on any equity that I have in the cars. What are the odds on this happening? If I do have to pay them how many months can I do this for? I really can't afford a car payment!!!

Thanks
Susan

[StaciMM]

Do you have loans on these, or are they owned free & clear? Are you the only person on the titles, or is anyone else with you? I'm not sure how much MO allows for vehicle exemption-but the difference between what you're allowed and what your vehicles are worth would be an issue. Likely, the trustee will take one vehicle to sell (proceeds to go to creditors after he gets a cut) and the other you would have to pay the difference on between what you're allowed and what its worth.

So, with that in mind, which ever vehicle you want to keep-claim the exemption on that one. (If you're filing joint, you can possibly double the exemption.)

If you own one or both of the cars w/ someone else, you would likely only claim 1/2 the value as the other person owns the other 1/2.

[StaciMM]

PS-My form7 software shows that MO has a $3000 vehicle exemption. That should be up to date, as I just downloaded it a month ago.

There is also a $1250 wild card if you're the head of family, otherwise $600. If you are the head of family, you can also claim $350 extra per child.

So if you're single/no kids, you can exempt $3600 worth of your vehicles, if you have kids & are head of family (not sure exactly what that is about) then you have more you can claim.

[sjh4chiefs]

Thanks Staci. My husband is on both the titles but he is not filing so my lawyer said they would not take the vehicles I would have to pay the difference. Anyone know how payments work regarding this? They are also owned free and clear. What is a wildcard??

[StaciMM]

I think you'll be fine then. You only own 1/2 of each vehicle, so you own $3000-3500 value and your exemption is $3000. You can use the Wild Card to cover the difference. (Unless $6000-7000 is your half...)

Out of curiosity, is your attorney aware that you are not the only one on the title?

PS-you're right that if you're jointly on the titles, they wouldn't bother taking the vehicles. They would have to pay you $3000 for your exemption, plus 1/2 what they get to your husband, and they might not even be able to use the proceeds to pay debt that your husbands name is not on. Even if they could, they'd only net a few hundred AT BEST after paying fees, etc. for selling it.

[StaciMM]

Some states allow a Wild Card exemption, an exemption you can use toward any property. MO allows one.