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Question About my Car

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    Question About my Car

    I have a 2003 Mitsubishi Eclipse that I purchased brand new in June of 2003. It is paid off. I have no car payment. Only a mortgage and utilities ect.

    Kelly Blue Book estimated that my car is worth maybe $2,000 as it has 143,000 miles on it. In my state of Georgia, equity in the car is exempt up to $3500. So would my car be safe?

    Also, would that exlude a "car payment" expense on my income/expense listing when I file for Ch 7?

    The car is in awful shape, though. Overheats, leaky oil and trans fluid, needs new spark plugs, new spark plug wires.....needs well over $2000 worth of work. I am considering buying a used truck for $14,000. My income is $2000 per month and I want to stay below the median of my state (which is $45,000).

    Your thoughts on this? Thanks in advance.

    NB

    #2
    Yes, your car would be safe as it is below the 3500 exemption.. You can't claim a car payment you don't have, but you can claim the maintenance costs.
    Filed Chapter 7 (no Asset) - Sept 2009
    341 Meeting - Oct, 2009 (Converted to Asset Case)
    DISCHARGED - Dec. 2009
    $1500 Buy Back & 67% Of Tax Refund Surrendered

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