Ch7 vehicle exemption question

[shifter]

Hello everyone,

New to the forum. Sorry everyone is here, including myself. My wife and I took a foreclosure due to my loss of income, and her being a teacher. I am still employed, but am on 100% commission. I'm sure I don't have to tell you that's been hard in this economy.

We live in NC, and as I understand it, we can only use the NC state exemptions and not federal guidelines. Considering CH7. Took the means test and we quailfy for it. However, I have a question about the $3500.00 vehicle exemption.

We own both cars outright. No financing. Nothing. Does the $3500 apply to equity in the car, or do they have to appraise under $3500 if you are to keep them. They are from 2003 and 2002, both with 100,000 miles on them. I can't imagine a trustee getting really anything for them at auction. However, they both appraise for about $4400 and $5400 respectively using KBB fair condition trade-in value.

Does that mean a trustee can take both cars? Can they really take your only means of getting to and from work? Doesn't that seem counterproductive to the whole reason you are filing in the first place?

Thank you in advance for any responses, and here's to hoping everyon gets a little peace to their lives very soon,

Shifter

[OhioFiler]

You can exempt the statutory amount and either use a wild card exemption for the balance (if available) or buy back the non-exempt portion of the assets from the trustee.

Assets are assets in a Chapter 7 case. There is no consideration applied to your need for transportation on an emotional level.

[BCA2009]

We had 5000 equity in a vehichle. the trustee made us sign a note to pay it to him over 12 months. And in our district, they didn't use trade-in. Our Attorney said the trustee uses "Average Retail".

[LostNFound]

I've always wondered HOW people can afford to buy back some of their things when they are in the position of having to file BK? For instance, we will lose a car, 2 snowmobiles and a motorcycle (this is my opinion after reading CH7 info), but a lawyer told me that we could buy some of that back if we wanted to keep it.

Ummmmm.....HELLO? Why would I file BK and then buy my stuff back? I can't afford it. So is there something I'm missing about buying back some of your assets? I've read it here and other posts and I'm wondering where people are finding the money to buy their stuff?

[ryan]

We had 5000 equity in a vehichle. the trustee made us sign a note to pay it to him over 12 months. And in our district, they didn't use trade-in. Our Attorney said the trustee uses "Average Retail".

How could a trustee use "Average Retail"?...nobody gets average retail except a car dealer!....That makes no sense. Is the trustee planning on opening a car lot?...what's the name, BK MOTORS???? lol

[LostNFound]

I agree with your post, Ryan.
I was told that the trustee uses trade-in value and generally the LOWER end of that!

[BCA2009]

I totally agree that it should be trade in. Just going by what my lawyer said the trustee in our district uses. I'm sure I could have fought him on the issue, but it would only have made a thousand or two difference and we were on the border in other areas, so I didn't rock the boat.

As far as buying back assets, the trustee gave us twelve monthly payments with no interest for the 5K. We don't really don't have the money, but it is a dependable car that will be paid off next year. We will scrimp by and probably have to borrow money from my parents to make the payments to the trustee. I'm sure alot of people could not do it, but if we had lost the car we would have to scrimp and borrow money to get a much cheaper/less quality vehicle, so in our case it made the most sense.