Automobiles

[r2106]

Here is a question about cars: One of our 3 cars is my 19 yr. old son's car. He uses it to drive back and forth to college. It is worth less than $2000, but is in my name. We have 3 cars, all valued under $3000, but 2 are in my name and one in my husband's name. I am wondering about the car that my son drives since it is in my name.

[ValleYum]

Don't you just hate how these things pop in your mind in the middle of the night? LOL

Ask your lawyer but I am thinking that you can cover it using Ohio's Wild Card exemptions - if you and hubby each get $1,175 you can use all of one and part of the other. I am not sure how the Trustee will handle the ownership expense of 3 cars on your Schedule J but I am quite sure your attorney will.

As far as determining the value of your son's car to exempt, it may be worth taking it to CarMax and getting it valued. You can look up the value (usually private party sale) on Kelley Blue Book but CarMax can see the dings and stuff in person that valuing them on KBB online can't. I am pretty sure CarMax does not charge for this.

Your attorney may just advise you to leave your son's car uncovered by an exemption and hope the Trustee thinks it isn't worth taking the car to sell and abandons it. (The the CarMax valuation mentioned earlier may be important in your asset and exemption planning). Even if the worst case happens and the Trustee does want the vehicle, you can offer to buy it back from him/her. I have even heard of Trustees letting you either make payments or waiting for a tax refund to allow you to buy a non-exempt asset back.

Again, your attorney will be the best person to help you decide how to do this because they know how the Trustees are in your area!!

Start making a list of these things you are fretting about (and maybe even noting the solutions mentioned here) so you can ask you attorney about them. This makes you an informed BK filer! You are doing great!!!