My car is worth too much


M

mlbinaz

I have a real problem. I'm $35,000 in credit card debt and need to file
chapter 7 before the new law comes into effect. The problem is I live in
AZ and the car allowance is only $1500, $4000 if you are disabled, and
mine is worth $7575 if sold privately, according to blue book. I can't
live without this car and don't want to sell it for a cheaper model. Is
there any way to get around this? Should I sell the car to someone else
and buy it back later? I have no other property or assets and rent an
apartment.
 
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R

Robert Stumpf

You need to speak to a lawyer, who could advise you of your options. I am
just curious though- why can't you live without the car?

--



*****

Rob Stumpf, Esq.

Stumpf and Ginter, Attorneys at Law
Practicing Bankruptcy in NY and NJ

visit us at www.online-law-firm.com
or email (e-mail address removed)


Disclaimer: No email or newsgroup communication is to be construed to
establish any sort of an attorney-client relationship, is not legal advice,
and is not a replacement for the advice of a competent attorney in your
jurisdiction.
 
M

mlbinaz

It's a beautiful car and I only owe 3 more payments. I've had it for 5
years and it's like my child. Plus how would I buy food or get anywhere?
I could never get a used car as nice when I only owe $600 on it.
 
D

Dr.Z

Take it to a local auto auction and ask them to appraise your car at the
price it would bring if the creditor had it sold at auction. That is
what your car is worth and that is the figure to use for your BK.
 
P

PWB

So it's a beautiful car. It's only a car.

Hell, I ride a bicycle to work. You can get rid of it and buy yourself a
nice cheap $1500 beater -- a ten-year-old Honda Civic or Toyota Corolla will
do the job nicely without raising a red flag with the BK trustee.


PWB
 
J

John

I am in arizona and my car is worth about 3300 and my attorney said
that was fine. I also did a quick search and it appears the car
exmeption is 5000.

Motor Vehicle $5,000 or $10,000 if disabled,

I got that amount from :

http://www.bankruptcyaction.com/azexemptions.htm


I have a real problem. I'm $35,000 in credit card debt and need to file
chapter 7 before the new law comes into effect. The problem is I live in
AZ and the car allowance is only $1500, $4000 if you are disabled, and
mine is worth $7575 if sold privately, according to blue book. I can't
live without this car and don't want to sell it for a cheaper model. Is
there any way to get around this? Should I sell the car to someone else
and buy it back later? I have no other property or assets and rent an
apartment.


x-- 100 Proof News - http://www.100ProofNews.com
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M

mlbinaz

I added more mileage, changed the condition from good to fair, used the
trade in option and I got the price down to $5305. Thanks for your help.
 
G

Grandma

Maybe your problem is solved now. I always thought you could choose
to continue payments on an unimpaired loan when the creditor agrees
and you have enough equity to justify this action thru bankruptcy???
Many years ago my husband and I let one car go back thru Chapter 7 (it
had a small loan balance on it and the other one was paid for). But
my husband had perfect payment history for the motorcycle and he was
able to keep it, he paid it off and we enjoyed many more years with
it. If that all has changed, then beg, borrow, have a garage sale,
something (!) to pay off the balance before filing.
 
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G

Grandma

I missed a point in my earlier post - sorry! Your car may show too
much value to be exempt from liquidation. Okay, like the earlier
suggestion to go to auction dealer, I agree. The more paperwork to
prove the value you need it set at the better. Take your online
value, one from auction or other dealer, and get a auto mechanic to
give you a quote for ANY possible needed repairs, tires, etc. Type up
your own statement showing what the first two values are that were
given to you. Then for each, deduct what repairs/update costs are
necessary. Take those two smaller amounts and figure that is the
range of value the car should be considered at by the court. I did
this in a CH 13 case a few years ago. The bank wanted its $3200, but
the court approved my motion for value at $250 based on necessary
mechanical repairs. Good luck!
 

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