If I file bankrupsty, will they take my car?

What is the name of your state? Colorado

My husband and I are thinking of filing for bankruptsy, we have just purchased a car with a $3000 down payment. Can they take our car from us? And can they take my husbands musical equipment? Or our computer, or television? Or anything like that?

Originally Posted by Butterfly_wings

What is the name of your state? Colorado

My husband and I are thinking of filing for bankruptsy, we have just purchased a car with a $3000 down payment. Can they take our car from us? And can they take my husbands musical equipment? Or our computer, or television? Or anything like that?

There are quite a few exemption out there.
Every state have different rules. I suggest you find out the rules of your state first.
Musical equipment -if it is use for work, maybe exempt. If you don't have to declare it, by all means don't even mention it in you petition.
About the car- Maybe a lawyer can advice better. In my state up to 3500 dollar of its value is exempt; If it is the only vehicle you have. Again Colorado laws might be different. About the TV dont even include that, in your petition. Good luck!
AR36

[AttorneyOney]

Originally Posted by AR36

If you don't have to declare it, by all means don't even mention it in you petition. ... About the TV dont even include that, in your petition.

This is extremely bad advice. Failure to list all assets (and asset means anything that has any value at all) is grounds to deny a discharge and may lead to criminal prosecution for bankruptcy fraud. When one thinks an asset has no value, the right thing to do is to schedule it and be prepared to back up the value with evidence if asked.

Question: This musical equipment and TV - were they purchase on a credit card?
If so, credit card companies, dont even show up at bankruptcy, creditors meeting.
so why not keep it from the petition?

[stephenk]

because they are assets of the estate. the court may order them subject to sale to pay off other debts.

[Ladynred]

As already stated by others, leaving off assets can get you in BIG trouble so you NEVER try to hide assets. If you are accused of bankruptcy fraud, you could find a couple of FBI agents on your front porch to investigate !! BAD, BAD, BAD idea !

The general CO exemptions are as follows:

* $45,000 in equity in your home or sale proceeds if sold within the year prior to bankruptcy;
* $25,000 - Farm machinery, tools, livestock
* $3,000 - Household goods;
* $1,000 - jewelry and watches;
* $25,000 - Cash surrender value of an insurance policy;
* $3,000 in equity in motor vehicle or a bicycle; $6,000 if elderly or disabled;
* $1,500 - Personal books, family pictures;
* $3,000 - Professional library;
* $600 - Provisions and fuel;
* $10,000 in things you need for your job (tools, books, etc.);
* $1,500 - Wearing apparel;
* any amount in an IRA, 401(k), or pension plan;
* your right to receive certain benefits such as social security, unemployment compensation, veteran's benefits, public assistant, and pensions * regardless of the amount.

You need to understand that the value YOU place on your 'stuff' is more sentimental than actual. The general guidelines for valuing personal property is to use garage sale-type prices. If the musical instruments are for his job, he's got up to 10K he can use to exempt them. A tv (not a digital or HD wide screen), wouldn't sell for nearly what you paid for it and if its a few years old, its worth even less.

The exemption for the car goes to EQUITY only. Since you only just bought it, even with a 3K down payment, the equity may yet be exempt.

Most people lose nothing in a Ch 7 bankruptcy. Go for a few free consultations and find out what you're looking at, only a lawyer can give you a complete rundown on exemptions and laws in your area.