We will be filing BK7 next month, and I've been trying to do as much pre-planning as possible. My DH has a classic car old enough not to be found on the typical valuation sites (KBB and Edmunds), and looking at comps isn't helpful because the only cars of this type sold in our area recently are complete, restored cars; hubby's is only in the beginning stages of restoration (got put on indefinite hold due to $$$ issues), is in pieces, and is incomplete - as in no engine, no transmission, a lot of rust and other bodywork that need to be dealt with, etc. In cases like this, where a finished car of this type could be worth a lot of money but this particular car would need thousands put into it to elevate it to that level, how do the courts determine its value? If they did decide it's worth selling, who would be responsible for gathering up the pieces and hauling them back to our county (it's in a friend's garage on the other side of the state because that's where DH was working on it)?
-
-
Typically an auto appraiser can provide estimates when traditional means are insufficient. This may not make sense if it's only part of a car. If you were to sell the parts/partial car to someone, how much do you suppose you'd receive?
If it's more than $0, it should be scheduled somewhere. If you can exempt it, then you will probably be fine.
If you can't exempt it, I would explain to the trustee that it's an incomplete and partial set of parts to build a car. List whatever the value is of those parts. It is doubtful the trustee is going to want to pay to have the parts picked up and sold -- trustees prefer cash. Depending on the value, the trustee may abandon it if it's not likely to result in a quick and easy sale. In the worst case scenario, you can offer the trustee some cash for the amount you can't exempt.
Comment