Ch. 7 & Vehicle exemptions

[floradelaluna]

What is the name of your state (only U.S. law)? GA

Will be filing Ch. 7 and worried about everything. Reading articles about GA exemptions which sounds like life will come to an end. Atty. my husband met with made it sound much less horrible. I am so confused. I spoke with him very briefly because I think the vehicles we need to keep will exceed the exemptions. I was worried about my truck, which may be worth between 10k and 15k and I only owe 6k. He's making it sound like I can keep the truck, even though auto exemptions are $3,500 in GA. He said what matters is how much equity I have in it. This is clear as mud.

 

[bigun]

Subtract the amount you owe from the value of the truck and that is your equity.

If, there is excess equity, you may have to negotiate with the trustee to buyout the excess.

 

[Deedils]

Auto Exemptions

If you owe substantially more than your car is worth and want to include in your bankruptcy, are you required to return the car? Do you retain with payment of the value?

 

[bigun]

If you owe substantially more than your car is worth and want to include in your bankruptcy, are you required to return the car? Do you retain with payment of the value?

An auto loan is a secured debt. If you wish to keep the car, you need to be able to make the payments.

 

[floradelaluna]

Subtract the amount you owe from the value of the truck and that is your equity.

If, there is excess equity, you may have to negotiate with the trustee to buyout the excess.

What, exactly does this mean??? Do you have to pay the trustee what you have already paid into the vehicle????

Don't they usually use NADA, not KBB? There's such a range of values...rough trade-in, Avg. trade-in, clean trade-in, clean retail. So which one do they look at? I love my truck but may have a buyer if I HAVE to get rid of it and find a clunker.


Chicken little was right; the sky really IS falling.

 

[bigun]

No, you don't pay the trustee what you've already paid. For ex. you have a $1000 excess equity. That's the number you negotiate.
Ask you lawyer how trustees value vechicles in your district.

 

[floradelaluna]

Thanks for your help. Darnit...my h saw had the free consult three months ago, then decided not to file. (He's self-employed and work is a roller-coaster) Now, to go back and ask more questions, we have to pay him $200 per hour. Hubby can't remember everything he was told.