Question about car

[123ABC]

Hello all. I have been reading for a little while now and have found lots of good information. I have a question about keeping a car during a ch 7 filing.

I am going to be filing with in 30 days, i am just waiting for my mortgage modification to be completed. I keep seeing this thing about having purchased a car prior to 910 days... can somebody please explain this to me?

I have a 2004 Ford Explorer that I purchased in Dec 03. It will be paid off in 8 months. it is worth about 1/2 of what I owe however since it is almost paid off I want to keep it. Any thoughts?

Thanks.

[lrprn]

I keep seeing this thing about having purchased a car prior to 910 days... can somebody please explain this to me?

According to the current bk law, if you purchased a car more than 910 days before filing, then that car's loan value can be "crammed down" to the car's current market value for condition regardless of how much you still owe on the auto loan. Since you bought the car in Dec 03, that's more than 910 days ago, so this car qualifies for the "cram down" on the loan to what it is actually worth.

Since you want to keep the car, then when you file your lawyer will list the auto loan as reduced to its true value.

Your next question is probably going to be whether you should reaffirm the adjusted car loan or not when you file. Ask your lawyer, but typically most will recommend that you not reaffirm a car, especially an older car like yours.

[123ABC]

So what source do they use to determine the car's true value? Also can the CU my car note is through choose to not accept a "cram down" and take back the car?