how to redeem free and clear vehicle if there's no exemption $$ left

[cubanito72]

I'm not sure how to ask this question, but I'll try my best. I file bankruptcy in Florida, and claim my homestead exemption. I'm only allowed 1k for personal assets and 1k for a car. My free and clear car is worth 5k, so I'm 4k short on exemptions. I don't want to surrender the car....I want to pay the trustee the 4k over the course of 12 month. How and when do I indicate this? Do I file and go to the 341 and let the trustee file a motion for turnover of assets and then object and let them know I want to redeem? Or, since I know I'm short up front...is there something I can do or file so the trustee knows my intention and doesn't file a motion for turnover?

[justbroke]

Are you filing Pro Se?

Since you say that you need to use the Florida homestead exemption, found in the Florida Constitution Article X Sec. 4, then I will assume you actually have equity to protect. If not, that's a mistake in understanding how the homestead exemption works. If you have no equity, then please respond that you don't have equity. You would get the $4K unused homestead exemption in this case.

If you are filing pro se, you may find it difficult to work with the Trustee. Many Trustees tell you that if you want to "buy" the car back, then go to the auction and bid on it yourself. You'd have to come up with a really good plan by the 341 meeting and let the Trustee know. Not all of them will let you spread out payments over 12 months. Some want it in 90 days. This is not a redemption so I wouldn't use the word "redeem". You might even be able to offer less to the Trustee for the non-exempt equity. I hope that you are using Kelley Blue Book "clean retail" for your price. You may find that you have even more equity than you think. This is despite that the Trustee would probably only get a liquidation price at auction, the standard in Florida is "clean retail".

There really are no suggestions. As you are realizing, everyone doesn't get to keep "all" their property in a Chapter 7. If you are worried about the car that much, your alternate is a Chapter 13.

I would still expect the Trustee to want the vehicle. They would only file a Motion to Compel Turnover if you were resisting in some way.

Even if I knew your Trustees name -- and I don't want to -- I could not tell you how they'd respond to your offer to pay over 12 months. That is something you could mention at the 341 Meeting and work out later.