Vehicle Question

[jb300]

Now here is my next question. My truck is going to be on the edge of the limit for my IA exemption of $7K. I have to have it for work. I tow a 16' cargo trailer for work. I haul carpet, vinyl, pad etc. in it. I also carry that stuff sometimes in the back of my truck. So therefore the back of my truck is scratched up pretty good.

If the Trustees come back and say the truck is worth say 10K( NADA in rough condition says under 7K), what happens?

This is the only vehicle we have that will tow this trailer. My BF has a motorcycle. We work out of this trailer and truck everyday. If they want to take my truck then do they have to give me my state exemption of 7K so I can get another truck?

Also if I am allowed 10K for work equiptment, I am upside down on the cargo trailer, could my truck be included for that work exemption? I don't have any work tools except my cargo trailer, truck, carpet knife and staples, except my computers that will be fine with my personal exemptions.

My BF and his son, my sub contractors have their own tools and do the installing. I just do the carpet strip, pad, prep and cleanup on jobs as well as the sales and office work. We each carry our own artisans insurance. My BF and his son, who doesn't live with us, each do their own jobs also, not just my work.


This truck has 174,000 miles on it and I put 100-200 miles a day on it. The miles go up fast. I have already had a new rebuilt transmission put in it at 100K miles. The electric door locks no longer work, missing a door gasket. We work out of this, the interior is dirty. I am on gravel roads daily. Original exhaust, needs some brake work. Soon going to need both batterys replaced.


I don't have extra money laying around to buy back the truck... just trying to get prepared in case something comes up. I would rather be ahead of them than behind the 8 ball and scrambling.

[StartingOver08]

Get an independent appraisal of the Truck in its current condition.

[JoeBankrupt33]

I read that in Iowa, you cannot exempt your car as "tools of trade." So, it needs to be under the $7000. If your lawyer thinks you might have a problem, then I'd look at getting the appraisal.

[jb300]

He didn't say it would be a problem but he looked it up one place and came up with 10k and I had a print out from Nada that said fair was just a little over 7k and rough was under 7k. He put 6800K on the paper we were working on.

Do car dealerships do these appraisals and do they cost to have it done?

[justbroke]

Suffice it to say that the truck is not an allowed exemption for non-farming debtors under the current Iowa Exemption code. It is well settled as well. The only thing you can use is that motor vehicle exemption.

Your main offense/defense will be to make sure the truck is valued under the limit for a motor vehicle. It is not a "tool of the trade" for non-farming business in Iowa. So, you want to make sure it's valued correctly. Worse case is that you pay the Trustee the difference between the exemption and the value.

Just my $0.02.

[StartingOver08]

Since the truck valuation is critical, I would get an independent appraisal as stated before. Getting a value from a car dealership will not fly with the Trustee. It is my understanding that these independent appraisals are reasonable - not expensive.

[jb300]

Ok, let's say I get this appraisal and the value is going to be more. I am suppose to get a 7K exemption in IA. I have to surrender the truck. Do they pay me my 7K so I can get another truck then?

[justbroke]

Ok, let's say I get this appraisal and the value is going to be more. I am suppose to get a 7K exemption in IA. I have to surrender the truck. Do they pay me my 7K so I can get another truck then?

They won't make you surrender the truck. You'd be offered to buy out the Trustee. This is much easier for the Trustee and almost certainly gives the Trustee more money by not having to auction it or have a third party sell it for the Trustee! So, you basically make an offer!

Let's say the Trustee insists the value is $10K. You have the $7K deduction. The Trustee will want $3K from you or they'll sell it for less than $10K (they never get the real value), and give you $7K of it. Worse, is if the Trustee tries to auction it off and only gets $7K for it. They just wasted their time and money, as they have to give you $7K.

Rather than take a chance, the Trustee will offer you to buy it for $3K. You offer $1.5K (50%). The Trustee would probably take the $1.5K because the cost of selling the $10K truck and not actually being able to get the $10K... just isn't worth the effort.

[jb300]

We have no extra money to buy the truck back. I might have a little bit of loan value in my life insurance which is exempt but that is it right now. We live pay check to pay check.

This last years economy has been tough on us. When fuel skyrocketed and I was paying over 4.50 a gallon for diesel, some months I was paying over 1K a month in just fuel to get us to and from work and sales calls.

Then this last winter with the house not being ready our electricity was terrible and I am now in an agreement with them to pay extra each month to get that caught up.

Give me 2 years when my house is paid off I gain 600 a month, but now I don't have it so then what do they do?

Let's say the Trustee insists the value is $10K. You have the $7K deduction. The Trustee will want $3K from you or they'll sell it for less than $10K (they never get the real value), and give you $7K of it. Worse, is if the Trustee tries to auction it off and only gets $7K for it. They just wasted their time and money, as they have to give you $7K.

Worse even yet is if they auction it off and they don't even get 7K. If someone looked up our vehicle record they will see there have been problems with it and more will be coming soon. I am going to look up an appraiser just in case.

[justbroke]

Worse even yet is if they auction it off and they don't even get 7K. If someone looked up our vehicle record they will see there have been problems with it and more will be coming soon. I am going to look up an appraiser just in case.

Yes.

I think all this talk is moot until you get a reputable company to perform the value. I would ask for two values... private party value and auction value.

Looks like you already checked NADA. You should probably do a quick check on Kelley Bluebook online and Edmunds.COM just for a ball park. I'd use the private party, but make sure you list the condition as fair or poor (by checking the description). This should give you "some" idea if the different pricing books are similar.

I really don't see a Trustee arguing it's worth more when it's condition is poor. You can always tell the Trustee to go ahead and take it (a bluff) as they know what they can recover. You did say that NADA was under $7K, so I would trust that more than speculating on what the Trustee thinks. You may also want to get an "advisory estimate" for needed repairs and keep that as backup to the pricing as well. Any dealership will do an "advisory estimate" for you.

(I rented a truck to move last summer and paid $4.999/gallon for bio-diesel. It was a 55ga tank and I filled it 2 times. )

[jb300]

This is Edmonds....

Add Options to this 2001 Ford F-250 Super Duty XLT 4dr SuperCab LB Trade-In Private
Party Dealer
Retail
$5,895 $7,147 $8,450


This is for Fair condition in my zip code.

And this is from Nada:

PRICING


Rough
Trade-In Average
Trade-In Clean
Trade-In Clean
Retail
Base Price $4,125 $5,225 $6,125 $8,000
Mileage - 174,000 miles -$950 -$950 -$950 -$950
Options

Towing/Camper Pkg $50 $50 $50 $75
Turbo Diesel Engine $3,250 $3,250 $3,250 $3,625
TOTAL PRICE $6,475 $7,575 $8,475 $10,750*
* This Retail price is based on a clean vehicle history report. Don't make a $10,750 mistake. Get a Free VIN Check today. Find out why AutoCheck is better than Carfax.

[justbroke]

Sounds great! You have three sources which basically say about $7K or less. Good luck with this!