I just filed Chapter 7 pro se on Dec. 21st. I believe my auto is fully exempted, but may not be according to interpretation of NY state law. The title in unperfected, I verified that the DMV has no record of lien, and I possess the clear title. My question is this: If the trustee seizes the car as an asset to sell, do I receive the amount of money that is exempted by law? Also, how does this work, will I have some time to surrender the car (to remove personal belongings, tags, etc.)? The car is worth about $7k, I owe $9600, and it is my only means of transportation.
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I believe (but am not positive) NY vehicle exemption is $2400 for single or $4800 for married. Either way, if the lien is not perfected the Trustee will auction the vehicle, give you the allowed exemption (whatever that is) and use the balance to pay himself and creditors. So long as the vehicle has FULL insurance coverage it is unlikely that the Trustee will take possession until just before he sells it. You will, however, need to have it available for viewing if any potential bidder wants to see it.
Some trustees will offer the vehicle to you for the non-exempt value, but since the spread between your exemption and the value is, in my opinion, substantial, the Trustee will be required to offer it to the highest bidder.
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Thanks for the response! Should I have the vehicle appraised or is it too late for that? I based the stated value on the NADA book value. I am currently carrying liability coverage because of my financial situation.Originally posted by despritfreya View PostComment
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Sure, why not. . . value should be based upon wholesale (liquidation) value.Originally posted by as125 View Post
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