chapter 7 assets?????

[MyNightmare]

Hello, I am new to the forum. My wife and I are looking into filling chapter 7.
This has been a tough decision to make , and one that we thought we would never have to. But who would think it would come to this right.
any way me question is about cars. We are in Colorado. Form what I understand you can have up to a $5000 car each. I am not sure if it is one care each, or total. My wife has a grand cherokee that we paid 5k for a few months ago, we own that one out right so I think we are ok there.
My truck is a lease, and I use it for my business. I will keep this one in the end because I need it for the business. I have learned that a lease has no equady and is not even looked at. I owe a bit more than it is worth any way.
So now comes my questions. I also have a 68 camero. It is not what you think though. It is curently reistared because it came out of a sticky situation, and I transferd it as soon as I got it two years ago. I only payed $100 and still have the bill of sale from a family member. The car is not complete, it has no engine, no transmission, missing some front sheet metel and needs paint. At this point it is apart and just a shell in the back. I plan to fix it up slowly. Are they going to try to put a value on it, or take it? can i call it part of my allowance? I want to have it in the end so I dont know if I should sell it to a friend now, and spend the money on bills, so at some point I can potentialy buy it back, or to talk to a laywer? what do you guys think. any one had a parts car?
Thanks in advance

[hamburgervol]

I had the exact same situation as you. I too have a resto project. The trustee did question my intent on the vehicle. I too plan to get it road ready someday.

Your Camero is basically worthless to the trustee as it sits. (unless he/she want's to invest the money to get it road ready, which they won't)

You might want to take some pictures just in case the trustee does want to make sure you don't have a mint condition Camero stashed away.

I don't think you have anything to worry about.

[Llelxon]

I don't know about the exemption limits for Colorado, but would think you should be able to find somewhere to exempt it. I would not sell it to a friend, for one that would be illegal if you are planning to get it back from them and it may raise suspicion unless you are waiting like a year to file after the sale.

My opinions, because I don't know much

[AngelinaCat]

I had a 68 Impala that we bought as 'fixer-upper'. We played with it and fiddled with it until 'Hub got prostate cancer in 2004. Then the car went into the garage and sat w/o being started until we filed in Dec. 2007. We gave a value of about $300.00 as parts. The trustee did ask about it at the 341 as to what condition it was in:

"On a scale of from 'show-room quality' to 'housing squirrels', which is it?"

I said that while it was in better shape than housing squirrels, the green color on the sides is not paint, but mold.

The trustee ended up formally abandoning it. I think you will end up being okay.

[LimpDisc]

Welcome to the forum!

I know you have that vision in your head about what that 68 Camero might look like some day, but the trustee will probably see it as nothing more than junk.

[MyNightmare]

well this is makeing me feel better! thanks guys any more stories?

[BobMango]

well this is makeing me feel better! thanks guys any more stories?

I have a project Jeep that has no engine, I listed the value as $100. The trustee asked about it but lost interest when I said it was not running.

I'd agree with other posters that the trustee will not be interested in it. Converting it to a sellable asset will not be worth his time or trouble.

[DeadManCrawling]

I present the opposite side of the coin, at least so far.

I am in the process of losing a 2002 BMW Z-3 to the CH 7 trustee.

This car, though not running, presents a fairly valuable asset that is easily liquidated. Market value on it, even minus the transmission (needs repairs), is about 5k. So, we let it go. Small price for letting another 700k or so debts go, too.

So, in our case, it was welcome. Also, the transmission replacement would have cost about 6k at the dealer. We could have had it done much cheaper on our own, but most folks who buy these cars will not buy if it has non-dealer repair work done.

On the small chance the trustee decides to abandon it, we will garage it, if we can get it back from the dealer, and fix it later.

best,

-dmc

[gunner01]

I present the opposite side of the coin, at least so far.

I am in the process of losing a 2002 BMW Z-3 to the CH 7 trustee.

This car, though not running, presents a fairly valuable asset that is easily liquidated. Market value on it, even minus the transmission (needs repairs), is about 5k. So, we let it go. Small price for letting another 700k or so debts go, too.

So, in our case, it was welcome. Also, the transmission replacement would have cost about 6k at the dealer. We could have had it done much cheaper on our own, but most folks who buy these cars will not buy if it has non-dealer repair work done.

On the small chance the trustee decides to abandon it, we will garage it, if we can get it back from the dealer, and fix it later.

best,

-dmc

Hello dmc,

So, did the trustee send an appraiser out to look at the vehicle or did they they pull their figure from the NADA retail?

gunner01

[DeadManCrawling]

They used KBB values, and used the "Fair" market condition. Though the car does not run, it presents significant salvage value, and that is what they are after.

It is an interesting case, since the vehicle was in for repair at the time we filed. Most states allow mechanic's liens to be placed on such vehicles, but no actual work had been performed, so trustee thinks she can get the vehicle. If they tried to place a mechanic's lien after filing, that would be in violation of the stay. I am interested to see what happens.