Can I keep cars if no asset case?

[twuoo]

Just wondering....

I have 2 cars. One is kind of a beater, I've had to put alot of repairs into it. Bought it for around $2700, so it is under the MI exemption for car value. Who knows how long it will last. The other is about 6 years old now with some minor issues. Worth maybe $5-6K in the condition it's in.

If I am a no asset case, what would be the chance that the trustee will take the other car which has some value.

I'm debating selling the car with some value to put into home repairs. Ideally, I'd like to hold onto the car until after the bk so that I may be able to trade them both in for something more reliable.

Thanks!

[keepmine]

If your state exemptions don't cover trhe value of the other car, expect the trustee to take it as property of the estate.

[havetodecide]

Same as my case, i have no assets and only have a car worth 6K, the exemption in my state is 1K, so lawyer told me they would take the car and if i wanted, sell it back to me, so check the exemption in your state as keepmine said

[BKTango]

Check to see if your state has a wildcard exemption or if you have any unused portion of personal property exemptions it can be put towards the car. We were a no-asset case and have 5 vehicles (3 drivable, 2 projects) that we kept because we did not use up all of our personal property exemptions. It kinda just depends on where you are and what your trustee and courts will let slide through.

[twuoo]

Ok, the state of MI is supposed to have a wildcard of $9250. My guess is that the other household item exemptions allowed will cover all my other wordly belongings (which isn't much).

Since the value of the car is worth less than $9250, would I be able to keep it using this wildcard exemption?

[SinkingFast]

Some States are very specific about the Vehicle Exemption. One vehicle/filer. One per licensed driver in the family. Some States don't specify a number of vehicles. They allow how ever many you can fit under the $$$ amount.

Michigan filers can choose to use either State or Federal.

If you go with State Exemptions, you can only keep 1 vehicle.

CHAPTER 54A. BANKRUPTCY
Sec. 5451.

Sec. 5451. (1) A debtor in bankruptcy under the bankruptcy code, 11 USC 101 to 1330, may exempt from property of the estate property that is exempt under federal law or, under 11 USC 522(b)(2), the following property:

(g) The interest, not to exceed $2,775.00 in value, in 1 motor vehicle.

http://www.totalbankruptcy.com/state...s_michigan.htm

If you and a spouse are filing joint, you may be able to double the Vehicle Exemption and keep 2. One for each filer.

Based on the $9250 you mentioned, I'm guessing you plan on using Federal Exemptions. Or your attny has suggested Federal Exemptions will work best for you. In that case, you can protect whatever property you chose with the $9250. It's a WildCard to be used to protect any personal property you designate.

[twuoo]

What if the car of value was sold and the money just sits in my bank account. Is that treated any differently?

[BKTango]

I believe money is treated differently. If you've already filed, you can't sale that car until you are discharged or have permission from the trustee. It's part of the bankruptcy estate. Like SF said about some states allowing so many cars under the dollar amount while some only allow 1 per driver, it's kinda the same for money. Some states you can use the wildcard to exempt extra funds, some states only allow so much cash and the rest they take. If you haven't filed yet and plan on selling the car so close to a filing date, expect to explain that to the trustee.