Car offer - trustee in chapter 7

[jessica0607]

Hi,

Just curious, if I file chapter 7 in Feb with my 2005 Explorer (title in hand) and a private party KBB good condition sale price of $10500 - trade in at around $9,000, about how much would a trustee require to keep this vehicle? Would this be after the meeting of the creditors which would be around March - Early April? Why do they use a hire value than home property (garage sale?) - I would think that vehicles should be listed at EST auction value since that is what they would get plus have the expense of carrying the car, procssing fees...etc.
I know all trustees are different but just trying to forecast. Nothing is owed on this vehicle, but need it to keep up the job search.

Sinc,JLS

[2manybills]

Hi,

Just curious, if I file chapter 7 in Feb with my 2005 Explorer (title in hand) and a private party KBB good condition sale price of $10500 - trade in at around $9,000, about how much would a trustee require to keep this vehicle? Would this be after the meeting of the creditors which would be around March - Early April? Why do they use a hire value than home property (garage sale?) - I would think that vehicles should be listed at EST auction value since that is what they would get plus have the expense of carrying the car, procssing fees...etc.
I know all trustees are different but just trying to forecast. Nothing is owed on this vehicle, but need it to keep up the job search.

Sinc,JLS

Depending on the State you are in, it may fall under your exemptions.

[AngelinaCatHub]

Hi,

Just curious, if I file chapter 7 in Feb with my 2005 Explorer (title in hand) and a private party KBB good condition sale price of $10500 - trade in at around $9,000, about how much would a trustee require to keep this vehicle? Would this be after the meeting of the creditors which would be around March - Early April? Why do they use a hire value than home property (garage sale?) - I would think that vehicles should be listed at EST auction value since that is what they would get plus have the expense of carrying the car, procssing fees...etc.
I know all trustees are different but just trying to forecast. Nothing is owed on this vehicle, but need it to keep up the job search.

Sinc,JLS

I would definatly not fuss around before or after your 341 or discharge. Take a chance with the older car you have. If you trade for new, TT might think, hell, why is she needing bk, let's look further........ You don't want that. Wait till it's over. 'Hub

[LimpDisc]

We traded in our 2002 Ford Explorer in August for a newer vehicle. One of the attorney we interviewed was a TT for 15 years. He looked at me as if I asked a dumb question when I asked him about the trade in. He said it was no issue whatsoever for that trade in or if we traded in our other car too. He said you're not looking to defraud anyone by buying a secured asset.

If you wait until after you file BK, you can plan on paying 20% interest or more when buying a new car.

[shabam]

I have heard various lawyers suggest converting an asset into a liability, as it enables you to claim it in your petition as an expense. Not to mention the appropriate vehicle expenses. In some districts, without some sort of security or liability on a vehicle, you cannot even claim the expenses of running a vehicle that is paid off.

[jessica0607]

To clarrify - I live in florida and the vehicle I am talking about is our second vehicle I drive. Florida only has a $1,000 vehicle exemption - which will be for the first car - a saturn my wife drives which we own (in my name only) 16500 owed and has a kbb of $18000.

I can't get a new vehicle now because I am unemployed and my debt to income ratio is off the charts. The best I would be able to do is sell the explorer and get a clunker which may be breaking down - I figure I could sell the explorer and get a rental car as needed, but with a toddler and another baby on the way we really need a vehicle with capacity. Renting anSUV/minivan long term is like $900-$1000 per month plus taxes. Even renting a compact per month is nearly $700.

Please lets focus on my original question - time frames topay for the explorer and what value the trustee would want for the 2005 explorer if he considers a fair market of say $10,000- would he most likely accept $7,500-$8,000? Or be gready, take the explorer to the auction - having to pay for all the expenses associated with trying to get more funds from a wholesaler?

[LSUTiger32]

Please lets focus on my original question - time frames topay for the explorer and what value the trustee would want for the 2005 explorer if he considers a fair market of say $10,000- would he most likely accept $7,500-$8,000? Or be gready, take the explorer to the auction -having to pay for all the expenses associated with trying to get more funds from a wholesaler?

This question is pretty impossible to answer because no one knows which TT you are going to get and they are all different in their attitudes and how they handle things like this. Usually they will let you do a payment plan but again, it all depends on the TT you get.