Chapter 7 and Exemptions on keeping car question!?!?

[GoldenGirly82]

Hi there. I am filling for Chapter 7 in Illinois pro se.

I have $12,000 in unsecured debts.

I have no assets except for a 1994 Chevrolet Camaro V6 with body damage. Kelly Blue Book says it's fair market value is $2,750.00.

My question is, In illinois, you are exempt from a motor vehicle up to $1200 in equity. You are also allowed a wild card exemption from any personal property up to $2,000. I believe that these two exemptions can be added together, creating the $3,200 dollar exemption on my car.
Would this allow me to claim my car as exempt and not have to worry about the court taking it away from me to pay off creditors?

Would a better alternative be to take a loan out of the car for $2500.00 before I file? Because I actually do owe my boyfriends father $2500.00 for the car. He gave it to me and let me switch the title into my name so I could get a loan $2500 and use the car as my collateral so I can pay him the $2500.00 for the car.

My question is would it be wise to take that loan a week before filing? Or can I claim it as exempt, then after the BK is over, take out the loan. I am almost done filling out my papers, this is the only part I am stuck on! Any help would be truly appreciated. Thank you!

Golden Girly 82

[stephq]

You can reduce the blue book value of the car by the amount it would cost you to repair the car. Also, you can couple the wild card with the $1200 moter vehicle exemption (make sure you write the value and laws out separately on schedule c), leaving more of your wild card for other things.

Most of the advise I keep reading says not to do something like take out loans right before you file because it raises suspension.

[InDebtInMD]

I would use the KBB trade in value, it will be lower. It is probably what you would get (if you were lucky) if you took your car to carmax and got them to give you cash for it.

Other than that, get a repair estimate for any things that need to be done.

For instance, my paid off car is worth $980 according to KBB. However, I know I need a new water pump and belts (I Have a ~$480 written estimate for this) plus I was told verbally that I need some work done on the struts that will cost another ~$450. So I'm not really worried about this kind of stuff.

You could also go and get you car inspected and see what repairs would be mandatory for the car to pass inspection. Here in MD you can not get TAGs unless the car passes the state inspection.