Question regarding cars

[frankie1]

I will be filing Chapter 7 early May, second meeting with attorney is April 9th. I have decided to keep both of my cars, one for me, other for son. Cars are valued at 14,000 total - how much do I have to pay back for these cars in Chapter 7, is it monthly payments also what is the timeframe in order to pay them pay - Thank you

[StartingOver08]

Do you own these cars free and clear (no loan on them)?

What are your auto exemptions?
If you don't know your exemptions, look them up at www.legalconsumer.com and check the exemptions for your state.

[frankie1]

I own them free and clear, exemptions are 1,000 each, which would leave me 12,000 - what and how long is the payment plan for this in a chapter 7

[StartingOver08]

There is no payment plan - they want you to come up with the cash to redeem. Some people have been able to redeem through www.722redemption.com or similar type companies.

Do you know that these cars are really valued at $14000 or is that the NADA retail value that the Trustees always try to get? You can get your car evaluated though an independent valuation company. Do a search here for that - others have had substantial valuation reductions because of the independent valuations.

[frankie1]

kelley blue book

[StartingOver08]

KBB and NADA values are too high in today's market. Challenge the valuation. Check out the redemption website - and all the other companies that do redemptions also.

[frankie1]

thank you

[frankie1]

By chance is their a wild card exemption in florida that I could possible use?

[hopefulbk]

But do they look at the retail or trade in value? there is a big difference between those 2 values or is i an average of both?

[frankie1]

my attorney took private party value in my 1st meeting????

[hopefulbk]

my attorney took private party value in my 1st meeting????

Thanks- anyone else? I'm afraid to get screwed since this will be our only car and we are in FL and our exemption is 2K as a married joint filer... the private party of the car I'm eyeing is 2346 argh!

[IBroke]

There is no payment plan - they want you to come up with the cash to redeem. Some people have been able to redeem through www.722redemption.com or similar type companies.

Do you know that these cars are really valued at $14000 or is that the NADA retail value that the Trustees always try to get? You can get your car evaluated though an independent valuation company. Do a search here for that - others have had substantial valuation reductions because of the independent valuations.

Might be a stupid question, but how can 722redemption.com help in regard to the 2 cars if they are owned free and clear?

[StartingOver08]

Not a stupid question. Redemption is used to pay the value of the vehicle over the exemption amount to the Trustee. Most people in BK don't have the cash to pay for the value. Your choices in BK for the vehicle are either surrender, redeem or reaffirm. If you want to keep the vehicle the Trustee will allow you to redeem (if that is what is on your statement of intentions). In order to get the funds to redeem, if you don't have the cash, you need to borrow it. 722redemption.com is one source. There are other sources.

[StartingOver08]

Thanks- anyone else? I'm afraid to get screwed since this will be our only car and we are in FL and our exemption is 2K as a married joint filer... the private party of the car I'm eyeing is 2346 argh!

You can check with your attorney, but I think you would be safe with a valuation of $2346 because the Trustee has to figure in the cost to sell the vehicle and there would not be enough to give to the creditors once liquidated. JMO.

[IBroke]

Not a stupid question. Redemption is used to pay the value of the vehicle over the exemption amount to the Trustee. Most people in BK don't have the cash to pay for the value. Your choices in BK for the vehicle are either surrender, redeem or reaffirm. If you want to keep the vehicle the Trustee will allow you to redeem (if that is what is on your statement of intentions). In order to get the funds to redeem, if you don't have the cash, you need to borrow it. 722redemption.com is one source. There are other sources.

Thanks - that's what I knew - BUT these cars are free and clear...