Question re: car

[Lajazz947]

I am sure that this has been posted somewhere but I need some advice before going into my attorneys office.

Still not sure about 7 or 13

Three cars, one paid for, one lease is up, one leased

Gotta keep the leased one as under water

Paid for one might be worth $2500

Other car is very interesting case:

2004 Volvo XC90

Worth about $18,500/Residual was about $25,000

Lease was up on June 14, 2008

Before I turned car in the transmission went out

Volvo just fixed it today

Bank will sell it to me for $18500

Business partner will lend me the money to buy since I want my wife and kids to drive a safe car

Since the loan is not a traditional loan I may have problems since it will appear to be a fully paid for asset

Will a Trustee make me sell the car in a chapter 13 even if I owe my partner money for it and it is NOT free and clear?

Thanks

[woeisme]

Make sure that you have a signed agreement with your business partner showing that you borrowed the money for the car, and are making payments to him/her. Then it will be a secured debt that you can include in the CH 13 BK. Make sure that the agreement shows that the debt is secured by the car so that it's clear that you don't have all that equity in the vehicle. Secured debts are priority debts in CH 13, so partner will get paid in full for vehicle, and it will be just like you got the loan from a more conventional source, like the bank.

[sick of debt]

This sounds like it could create a number of problems.
1. You have to list your partner as a creditor because you owe him money.

2. The volvo, is worth 25,000, and you only owe 18000, the rest will have to be put under exemptions.

I know for my cars, the attorney wanted the kelly blue value so she could list it under exemptions. We have federal exemptions where I live.

I think the problem and question will be "why does your partner get paid and not the creditors ?". Hopefully I am wrong about this and you get to keep your SUV.

Best of luck to you.

the attorney will also ask you about any property transfers, personal transfers. So PLEASE do not have your partner purchase the SUV pretending it is for his/her use.

[woeisme]

Just re-read your post and saw that you are considering CH 7 as well. If that is how this plays out, you can re-affirm the debt so business partner doesn't have to worry about re-possessing the car or that you won't pay him back. As long as you have it signed and in writing, I think it's still do-able.

[Lajazz947]

Thank you SO much for the replies.

As you know the SUV marker is terrible so it is only because she drives so little that it makes sense to keep it.

The blue book is really about what i will pay for it. The residual was around $25,000 but definitely not the market value.

I will definitely get a signed agreement from my associate.

I am completely clean on all my records. No transfers, no CC use, no large withdrawals of money, no open CC accounts, no luxury purchases, no cash advances and virtually no CC use in the past 6/7 months.

I think that any questions raised can be answered truthfully and clearly.

I think that it will depend on the TT and how aggressive they are.

I know that it is the TT's job to simply find assets and collect money and that trying anything underhanded can be very bad so I am not going to fight the system with anything underhanded.

Thanks again.

[sick of debt]

Best of luck to you when you do file. Keep us updated