I keep forgetting to ask this question when I go on attorney consultations.
Lets say you qualify to file a CH 7. The only asset you have is a car you own outright valued at $5000, per Kelly Blue Book, or whatever auto valuation tool your attorney says to use. In Florida, you are allowed a $1000 auto exemption, so the trustee is the owner of the equity in the car after the 1st $1000. For whatever reason you decide not to keep the car. You intend on bringing the keys, title, etc. to the 341 meeting and giving the trustee the car right up front.
Now, what happens to the car after that? Must you keep it insured? Who pays storage? Do you get a full accounting of the proceeds after the auto is sold, and are you told how the proceeds are distributed to your creditors? Do you get the $1000 back after the car sells? What if the trustee is only offered $1500 for the car, will you get a call offering to redeem the car for $500?
The reason I ask is that the KBB and NADA prices on used cars seem so inflated. My soon to be ex has a 2000 Odyssey with 112,000 miles on it that KBB says is worth over $5000
. I wouldn't pay $2,000 for it! It is a mess! If I had $5000 to buy a car, it certainly would not be this van that KBB values at $5000 in FAIR (the worst) condition.
Mostly I want to know, do you get an accounting of the proceeds of any non exempt asset the trustee sells, and who is responsible for upkeep/insurance/storage while an asset is in the trustees possession and you have effectively signed it over to your trustee and are no longer the owner?
Lets say you qualify to file a CH 7. The only asset you have is a car you own outright valued at $5000, per Kelly Blue Book, or whatever auto valuation tool your attorney says to use. In Florida, you are allowed a $1000 auto exemption, so the trustee is the owner of the equity in the car after the 1st $1000. For whatever reason you decide not to keep the car. You intend on bringing the keys, title, etc. to the 341 meeting and giving the trustee the car right up front.
Now, what happens to the car after that? Must you keep it insured? Who pays storage? Do you get a full accounting of the proceeds after the auto is sold, and are you told how the proceeds are distributed to your creditors? Do you get the $1000 back after the car sells? What if the trustee is only offered $1500 for the car, will you get a call offering to redeem the car for $500?
The reason I ask is that the KBB and NADA prices on used cars seem so inflated. My soon to be ex has a 2000 Odyssey with 112,000 miles on it that KBB says is worth over $5000
. I wouldn't pay $2,000 for it! It is a mess! If I had $5000 to buy a car, it certainly would not be this van that KBB values at $5000 in FAIR (the worst) condition.Mostly I want to know, do you get an accounting of the proceeds of any non exempt asset the trustee sells, and who is responsible for upkeep/insurance/storage while an asset is in the trustees possession and you have effectively signed it over to your trustee and are no longer the owner?