Keeping the car HELPS me? How can this be?

[Wantmypeace]

I was just tinkering with the NOLO means test calculator, and I had planned on letting go of our Tahoe in the bk because it's underwater and has a 388/mo payment. However, if I replace it with an old beater, from what I've read, because I'm in the 9th circuit, I only get a $200 "old car" ownership exemption, while if I keep it, I get the whole 496 (or whatever it is) car ownership/lease exemption. Is it just me, or does it seem like the means test actually ENCOURAGES us to make poor financial decisions?

[Dee]

Welcome to the lunacy that is bankruptcy law. And to make it even more fun, some districts can take it and some can't.

[AngelinaCatHub]

I was just tinkering with the NOLO means test calculator, and I had planned on letting go of our Tahoe in the bk because it's underwater and has a 388/mo payment. However, if I replace it with an old beater, from what I've read, because I'm in the 9th circuit, I only get a $200 "old car" ownership exemption, while if I keep it, I get the whole 496 (or whatever it is) car ownership/lease exemption. Is it just me, or does it seem like the means test actually ENCOURAGES us to make poor financial decisions?

What I think the Nolo book was talking about is, until you get your 341, decide to "ride through" or reaffirm, the payment helps you on the forms. Your intent to do what you will may or may not change. You have the opportunity to put down your intentions. Your intentions could change (if you are a woman, more so....LOL).

Your auto stay will keep them from repoing your car until your case of discharged or dismissed. 'Hub