Car question

[brokeincmch]

Hello-

I filed a CH 7 on May 18th.

I currently lease my wife's car and own my car free and clear. We originally planned to reaffirm the lease for my wife's car but now we are looking at surrendering it. I have an opportunity to trade my car (2004 Scion xA) for a larger car (2007 Ford Escape with very high miles) in an even swap. My question is would I be allowed to do this or do I need to wait until after the 341 meeting or after discharge? My 2004 Scion xA is covered by exemptions but I am thinking that it is technically owned by the bankruptcy estate until the trustee approves my claimed exemptions at the 341 meeting.

As a side note, I am going to buy an older Ford Escort for $1500 so I will come out of my BK with no car payment whatsoever.

[IamOld]

I won't comment about the bk issues (and I do think you should sit tight until you are done) but trading a Scion...I had one of those an original XB and I traded it...and I traded it for a larger car (still 4 cylinder etc....should've kept it...

[AngelinaCatHub]

Since this is an even swap, the value is the same. Is your car covered with your exemption? Your Trustee care less about your exemptions, he is looking for assets. Technically you probably need permission, but practically I doubt any question would be considered. Remember to update your paperwork with the same value but different model. 'Hub

[jetsfan2010]

shouldnt be an issue but verify with your lawyer before making any move before the 341

[debee]

The trustee and/or your creditors have 30 days post-341 to object to your exemptions. If the trustee deems you "no asset" at the 341, then he's not planning on objecting so as far as he's concerned, the asset is abandoned. BUT your creditors still get the 30 days. In order to object, they'd have to prove that there was a problem with the exemption so these cases are rare.

It's safer to wait until you at least get the no-asset/NDR from the trustee. You can even ask for it at your 341.