Filing jointly - how to handle exemption for 2 cars

[Maquis]

Filing jointly with my wife, we have 2 cars that are both paid for and we wish to keep.

One worth $2800 KBB private party value, other worth $4500.

If we use the Federal exemptions, ($3225 for each) do we have $6450 total to use, or are we limited to $2800 on the one car? I know I also have $1000 wildcard that I can apply to car #2 if need be.

We are close to the limit on the cars, if we are within a couple hundred - shouldn't be a problem buying that back from the Trustee?

[SMinGA]

Its really a question for a local BK atty. That may be handled differently in different districts. You'll also want to find out what method your district uses to value cars. Where I am, its Nada Retail Value. As in, what it would cost me to go by the vehicle from a dealership now. Not good!

[blessed]

Our district used the trade in value. An attorney in your district can help answer that and tell you how to come up with a value.

[neorecon]

Depends on the district. For us the federal exemption was doubled because we filed jointly, but it was still only one exemption per car, so you couldn't take what was left from one car exemption and apply it to the other vehicle.

[blessed]

Our state has the $3225 exemption also, I just was reading this:

This exemption is not in the aggregate and can only be used on one vehicle. A husband and wife who are both listed as owners on the title for a motor vehicle, could each apply their exemption to the same motor vehicle.

Looks like one of your cars is safe, the more expensive one might be in jeopardy depending on the value the attorney advises you use. (If you use your exemption plus wildcard, $4225)

[neorecon]

Or if you're using federal exemptions and don't have equity in your home (or don't have a home) there is a wildcard that you can use to cover the remaining portion of the vehicle.
IIRC The federal wildcard is up to 10,000 depending on if there is any equity in your home.

[Maquis]

Thanks again for all the replies. We do have equity in our home and will be using the entire equity exemption if we file using federal exemptions.

If we aren't able to fully cover the second vehicle, how do we go about asking to buy back from the Trustee? List a portion as non-exempt, and then do we have to ask at our 341 to buy back with the non-exempt amount?

Maybe it's looking more like I need to be searching for a lawyer for some of these answers

[neorecon]

Yeah, when you start dealing with non-exempt property that you want to keep, I'd interview a few attorneys that do strictly BK work for assistance. Usually they know what will and won't work and what to expect if you want to buy back non-exempt equity or items.

[blessed]

Even a free consult with an attorney in your area can clear up these questions!