Need some help had 341 today & problems came up

[253BK]

Hello everyone so we had our second 341 today since we converted over to chp 7 and I need some help...

We have 2 paid off cars worth about 37,000 and they were fine when we were in chp 13 since we were paying back enough to cover our assets but now since we have changed to chp 7 the trustee is asking about the equity

We had paid 23K to the IRS and my attorney said something about some exemptions that would cover our cars this is why we converted now it seems that might not work and the trustee mentioned taking one of our cars to cover the differance of about 10K he is looking at

Do you think this would work out or are we looking at having to give up a car at this point? Also what can you do about converting back to chp 13 if that was the case?

Any input would be great please let me know your thoughts

Thanks

[MrSmithster]

$37k is a whopper of a car exemption. i live in CA and i thought we had the highest exemption at approx $20k total(and i dont believe all of that can go toward just an auto). what state did you file in? i was able to keep a car worth $4500, but 2 cars at that value and i would assume tt will take at least one in a chapter 7. hope i am wrong, good luck

[biotechsolution]

Hello everyone so we had our second 341 today since we converted over to chp 7 and I need some help...

We have 2 paid off cars worth about 37,000 and they were fine when we were in chp 13 since we were paying back enough to cover our assets but now since we have changed to chp 7 the trustee is asking about the equity

We had paid 23K to the IRS and my attorney said something about some exemptions that would cover our cars this is why we converted now it seems that might not work and the trustee mentioned taking one of our cars to cover the differance of about 10K he is looking at

Do you think this would work out or are we looking at having to give up a car at this point? Also what can you do about converting back to chp 13 if that was the case?



Any input would be great please let me know your thoughts

Thanks

I don't think you can covert back to a 13 after converting to a 7. You may lose at least one of the cars.

[bkmaggster]

$37k is a whopper of a car exemption. i live in CA and i thought we had the highest exemption at approx $20k total(and i dont believe all of that can go toward just an auto). what state did you file in? i was able to keep a car worth $4500, but 2 cars at that value and i would assume tt will take at least one in a chapter 7. hope i am wrong, good luck

Federal exemptions have a 20k per person wildcard exemption (if you're not exempting any home equity).

[KLH547]

If you don't mind me asking, what was the holdup in getting your ch. 13 confirmed?

[music12]

Federal exemptions have a 20k per person wildcard exemption (if you're not exempting any home equity).

i think it's around $11,000 per person. i certainly wish it were $20,000!

[mike258]

to be exact:

Unused portion of homestead to $10,125 may be applied to any property

[music12]

plus there is another wildcard of around $1,000.

[253BK]

to be exact:

Unused portion of homestead to $10,125 may be applied to any property

Is this per person??? With that I think we would be in the clear... We paid alot into the IRS bill that is what my attorney is going on that plus the exemptions

Our chp 13 case was held up due to us being audited by the trustee which took 3 months then never confirmed becuase I was laid off and couldnt afford to make the payment anymore that included our house payment

Thanks for all your input this really helps

By the way we are in Seattle WA

[bkmaggster]

Is this per person??? With that I think we would be in the clear... We paid alot into the IRS bill that is what my attorney is going on that plus the exemptions

Our chp 13 case was held up due to us being audited by the trustee which took 3 months then never confirmed becuase I was laid off and couldnt afford to make the payment anymore that included our house payment

Thanks for all your input this really helps

By the way we are in Seattle WA

Me too. And I don't know why I wrote down 20k per person when I know it's 20k per couple because that's how we did ours. *facepalm*

[253BK]

ok so how I am seeing it is we have about 38K in equity in our cars and that is our only assets so with 20K exempt and us paying in 22800 to the IRS unsecured priority we should be close to clear I hope

How I am figuring that we would owe 40K is the cars and our monthly money that is left over giving us a payment of 455$ per month of chp13 for 60 months

I am lost at this point I just hope it works more input would be great!

Thanks

[mike258]

Is this per person??? With that I think we would be in the clear... We paid alot into the IRS bill that is what my attorney is going on that plus the exemptions

It is per person, but both your names would need to be on the vehicle's title in order to combine the exemption. If there is only one name one the title, you can only use $10,125 (at least that's what my attorney told me, I had a similar situation).

[bkmaggster]

It is per person, but both your names would need to be on the vehicle's title in order to combine the exemption. If there is only one name one the title, you can only use $10,125 (at least that's what my attorney told me, I had a similar situation).

WA is a community property state, so the car belongs to both regardless of the title.

[253BK]

so there should be about 20K in exemptions for us 2 plus the money I paid into the chp 13 that all went to the IRS

Since we were never confirmed we just kept paying 5500$ per month for 6 months and it was all in the trustee account they we converted he sent a letter asking us to pay the IRS

I guess my attorney is thinking along the right lines if the 20K exemption is right plus the 23K sent to the IRS we should be covering the equity in our cars

Do you guys think I am right here? I sure hope so attorney hasnt responded yet gotta love that

[Chowder]

WA is a community property state, so the car belongs to both regardless of the title.

hmmmm....I filed solo. My attorney said I only had to list community, and my property. Not anything titled in another's name.