Automobile Exempt?

[millerc507]

First of all, I plan on filing in NC. I am going to file in the next week or two--as soon as I pay my atty the rest. I am surrendering my vehicle in the bk and my brother was going to loan me a car. We have run into a problem with the vehicle registration because the emissions inspection expired so he has to pay a $250 fee on top of the $40 registration. If he titles the car to me, I won't have to pay it--he will probably have to down the road--but at least not right now. My question is, how does the trustee determine the value of the vehicle. NC only allows $1500--but I just had to put $650 worth of brakes and tires on it to make it drivable. It is a 96 Acura TL with 150,000+ miles. With the needed work, Edmunds values it at about $1500.00 but since I have already had the work done, the value would increase, right?

Should we wait till after we file? What would be the ramifications of transferring title after filing but before the 341?

[treehugger1]

You might be asked at your 341 if you have received any cash, assets, etc between your filing date and 341. This would not be good. You filed for BK with the financial situation at the time of filing. Gaining assets between filing and the 341 might not look so great, regardless of exemptions. You did not have the car at the time of filing to qualify for the exemption. Check with your attorney.

[lrprn]

My question is, how does the trustee determine the value of the vehicle. NC only allows $1500--but I just had to put $650 worth of brakes and tires on it to make it drivable. It is a 96 Acura TL with 150,000+ miles. With the needed work, Edmunds values it at about $1500.00 but since I have already had the work done, the value would increase, right?

No, the car's true value is not dependent on brakes or tires. Whatever is listed on the Edmunds.com list of car features used to calculate the value of your individual used car is all that counts.

Should we wait till after we file? What would be the ramifications of transferring title after filing but before the 341?

These are excellent questions to ask your bk lawyer. I would definitely NOT transfer title until after your 341, and wait to do so until after your case is discharged if possible.

[SinkingFast]

Our attny values older, higher mileage, "everyday use" cars in Fair Condition, at best. Basically, that's as good as older cars get. Upholstery is worn. Carpet is stained and worn. Bodies typically need some sort of cosmetic repairs. Paint dings. Rust. That type of thing.

[millerc507]

I think we have it sorted out where we are going to stick with the original plan of me borrowing the car long-term. Thanks for the input.