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Can I buy another car after 341?

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    Can I buy another car after 341?

    I have a car worth (trade in value) approx $4500. I owe $2500 on it, so that would be $2000 in equity. That is exempt. No problem there. The thing is that my son's father just purchased him a used car. I had no idea he would be getting him a car so soon. The plan was to get it for him in a few more months. So all of the paperwork is in my name (sales receipt, title transfer). We live in different states and the car was shipped to me. It's an old car, a 1995 Nissan. The trade in value for that is $1500. I need to register this thing and I'm wondering if it would be safe to do it now or wait. Would it be okay to register it after the 341?

    My state allows car exemption of $3500 plus there is a $600 wildcard. I understand that there is also $5000 that can be applied from homestead exemption since I won't be keeping my house. An attorney I recently consulted with simply told me not to put the car in my name. But I can't put it in anybody's else name and my son is under 18 and therefore, it can't be titlte to him yet.

    Would a trustee have an issue with me having 2 vehicles even though they fall under the exemptions? Would I be given an opportunity to explain that it is for my son? He will be going to college this fall so that's why we got him the car.

    #2
    It's not clear where you are in the process. If you have already had your 341 then I would not think there would be a problem taking title to the vehicle. A lot of folks are paranoid about what they can and can't do after the 341 but before discharge. My attorney advised that I can pretty much go about my business after the trustee files their report of no distribution (up to 10 days post 341.)

    If you receive the vehicle prior to your 341 you have to tell the trustee. If you have the room with the wildcards to exempt it you should be fine. I exempted three cars, one truck and one motorcycle using available wildcards (Federal) to the tune of about $25K. We have 3 drivers in my household. The trustee did not even mention it.
    Case Closed > 2/08/2010

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