Negotiating with Trustee??

[EmptyBottle]

Is there a set percentage that a trustee will typically take on the value of vehicles in order to keep them?

Scenario: Both spouses filing, Ch 7, but separately. One spouse has vehicles titled just in their name and we either need to give 'em up or pay the value. We want to retain them so we need to come up with the money. But how much?

We've been told we can still be a Ch 7 if we pay the trustee the value of the vehicles. So we went to the NADAguides.com site and got the values (it's lower than Edmunds and KBB).

The atty said she's not sure what the trustee will take - that we need to make him an offer. Do we offer 50% of the listed value (low retail/average retail) or 75% or don't they typically negotiate? The combined values of the vehicles are about $15k.... is offering $10k fair? That leave enough room for dickering??

Thanks,
-EB

[justbroke]

Whether and what your Trustee will negotiate on is up to the Trustee. There are actually some Trustees that won't negotiate... telling you to just go to the Auction and offer a price you think at the auction. You can start at 50% and go from there. It's really based on what the Trustee's appetite is, and whether you get the type of Trustee who just sends everything to auction.

[EmptyBottle]

Thanks for the quick response.... from the way the atty is talking, he was talking offering $7-9K and going from there..... so we're trying to figure out how to come up with the $. Worst case scenerio we have to do a 13 and pay for them and more atty fees over 5 years.... we're just trying to avoid the intervention of the trustee in our lives for 5 years if we can.

[BCA2009]

Thanks for the quick response.... from the way the atty is talking, he was talking offering $7-9K and going from there..... so we're trying to figure out how to come up with the $. Worst case scenerio we have to do a 13 and pay for them and more atty fees over 5 years.... we're just trying to avoid the intervention of the trustee in our lives for 5 years if we can.

If the only thing holding up a chapeter 7 (versus going to a Chap 13) is giving up 2 vehicles worth 15K, I would give them up in a heartbeat and buy 2 clunkers and save my money up to buy decent cars. For what you will pay in chap 13 payments you would be able to save up for nicer cars in no time. Even if you were in a zero payback and were only paying attorney and trustee fees.

I'll bet if you ask anybody that has gone thru a Chap 13, if they could have gone to a chap 7 by giving up two cars, you would get an almost 100% "Yes" response.

Good luck on whatever you decide.

[coolmom04]

If the only thing holding up a chapeter 7 (versus going to a Chap 13) is giving up 2 vehicles worth 15K, I would give them up in a heartbeat and buy 2 clunkers and save my money up to buy decent cars.

I totally agree!

[AJA]

I offered the trustee $4k for the car and it was accepted pending the Judges approval.
You can pay the trustee in payment form, interest free. I only have 4 more to go out of 10.