My husband owns a truck and he is the co-buyer on the agreement. A relative is the buyer. The truck was intended for my husband and we are not behind on payments. We are filing chapter 7 and are confused about determing the equity and whether or not we need to sign a reaffirment agreement. Since someone else is the buyer do we split the equity 50/50? Thanks for your help!
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I don't know if this will help but I am the co-owner with my son on his jeep (he is a college student). We have $2500 equity in it and I only had to exempt half of that. I would say that in your situation, you would only need to exempt your 50% of the equity. -
The treatment of co-owned assets seems to vary between each bankruptcy district. Some districts will treat it as a 50/50, whereas others might get more indepth with it. If you are using a bankruptcy attorney, they should be able to tell you how your district handles these types of situations. Otherwise, perhaps you could get a free initial consultation from a bankruptcy attorney and find out how they said it would be listed.
To be on the safe side, if considering the truck as 100% to your husband doesn't go over his allowed exemptions, you could claim it at 100% just to avoid an issue.
As for the reaffirmation agreement, that will probably come down to how the creditor of the truck wants to handle it.Last edited by phoenyx; 04-04-2008, 08:57 AM.Filed: 03/31/08
341: 05/15/08 
Discharge: 07/15/08 
Do yourself a favor. Check everything I say with a bankruptcy attorney. Most attorneys will even provide a free initial consultation. In fact, it's your life, so check everything anyone says (including your attorney) for yourself!Comment
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