Car Question - or I've Confused Myself Reading Everything...

[CaroleAntsy]

I have a vehicle that I can barely afford but am behind 1 payment on. I owe $9500 on it and it's worth about $7K. Will I have to surrender my car? Obviously, I need transportation so I'm not thrilled with the possibility that I'd have to give it up.

I know I can keep the car if I file ch 13 but what about ch7?

I feel overly informed and overly-whelmed.

[tobee43]

if you are going into a chapter no asset 7 and your car value is over your exempted allotment, you'll be allowed to buy it back from the trustee. (they are just so nice!).

we ended up just surrendering the one car we still had payments on, and the other were didn't have to pay anything to keep since it was covered under our wild card exemption.

[CaroleAntsy]

Buy it back from the very nice trustee via lump sum? Because if I could do that I'd not be looking at filing.

Where are my wires crossed?

[momofthree]

You owe more on the car than it is worth, it will not be considered an asset. You will not be required to surrender it. You WILL be required to bring it current and continue making timely payments on it. If you cannot afford the payment, then you will need to surrender it.

[mountanddo]

What about trading in the car for something cheaper and then you wouldn't have a loan at all. Again, you said you are only paying the car and your monthly living expenses right now and none of your debts. Where are you going to get DMI for a Chapter 13?

[CaroleAntsy]

Momofthree...thanks!

Mountando...good question. If I file a Ch13 I would have to find DMI somewhere and trading in the car would make sense. No idea how to do that though since I owe more than it's worth.

If I file a 7 I guess I'd just keep it and keep making the payments?

I really need to stop thinking about all of this for bit. I'm stressing myself out and I haven't even decided to file.

[mountanddo]

OH, stupid me. I was thinking it was worth $9,500 and you owed $7,000. I don't have any good advice for you but seeing as you have those 2 repossesions it would be in your best interest to find a way to keep the car. Have you done the means test at all to see where you might be at?

[AngelinaCat]

AngelinaCatHub, otherwise known as 'Hub, and I were an Asset Ch7 case. We filed jointly, though I do not think that fact will figure into your mental musings.

However, we have, and still own a 2004 WW Jetta TDI. At the time we filed, Dec. 28. 3007, we still had about ten months or so to go before the note on the car was paid off. About two months after our 341 we received paperwork informing us that this vehicle, along with our 'real property', and two other vehicles, had been 'Formally Abandoned'. as being 'fully encumbered, exempt, or else 'two old to bother with.'

Our Jetta fell within the 'fully encumbered' area, because of the money still owed. The two other vehicles were too old, one a 1993 former police car bought at auction, and a1968 Impala Chevrolet, that had been sitting on blocks for three years. The land? We are a Homestead State. But we have sold our land to a State entity, and retain a Life Estate. We cannot sell or subdivide this land.

We are very happy about this, as this is what my parents, grandparents, and great-grands wished for their land. The money was put into a Trust, and is part of our retirement. We did this in 2001. We filed in 2007, so there were no problems there.

We ran into problems because our inept attorney did not educate us about BK. Nor did we find this forum until well after we filed, and had all or our mistakes firmly in place. *SIGH*

You are doing well in finding this forum first, and learning as much as you can.

[AngelinaCat]

If I file a 7 I guess I'd just keep it and keep making the payments?

I apologize for not answering this question in my long-winded post before. Yes, we filed a CH7, but we kept making the payments on the Jetta as usual. You may be asked to reaffirm the mortgage on your car, depending on your bank. Our accounts are with a Credit Union. We could have left them, but 'Hub has been a loyal customer for more than 40 years, and wished to stay with them. So,we reaffirmed that mortgage,