can I keep my car in chapter 7?


L

lakinapook

Hi, I was wondering if anyone could enlighten me about the rules
involving this particular asset. I recently bought my car, with
financial assistance from my mother. I purchased the car for 4800, I
owe my mother 3000 for it, and if I were to resell it, I would
probably get about 3500 to 4000 for it. I am allowed (I believe) 1500
dollars in equity. However, because I borrowed the money for the car
from a family member, there is no lein on it, so it looks like I have
more equity in it than is actually true. Can anyone give me insight
into how I can protect this asset?
 
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W

Wendy

we had a similar situation. relative dropped the request for the balance of
car so we only had to get an estimate of worth. turns out it was much less
than we thought. in this state we are allowed $1000. if the vehicle is worth
more, the trustee has the right to ask for the difference. our vehicle,
according to a couple places that buy cars, was worth less so we had no
problem. check with your attorney but here if you owe a relative it doesn't
cut any mustard and in fact may raise suspicion. you may want to check out
and get in writing what a couple of those used car sales would pay you to
buy it outright. our attorney told me checking blue book doesn't get it for
an estimate.

Wendy
 

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