My Car has debt but not in the eye of Bankruptycy

[Simbor]

I have a problem, hoping someone might have an idea. about two years ago I bought a sports car. It was an older model so I could not get a car loan for it, interest was too high. I used a home equity loan at 5% to purchase it- 22,000.00. I use it as my daily driver and have a 200.00 monthly equity payment I pay on it.
I'm going to go chapt. 7; However, in the eyes of the Bankruptcy court the car looks paid up. The blue book value appears to be around 19,000,00. I know I would be lucky to really get more than 15,000.00 for it.

I have two other cars; one is paid off and looks like its value is 13,000.00 and the other 10,0000. with about 1000.00 loan on it. both are old cars, and not in great shape I'm surprised they are even worth that much- a Honda Eliment 5 years old with 100,000 miles on it and a Ford SUV with 90,000 and 7 years old.

I am totally stuck here- if I had a car loan on this car I would be all set, but I don't. What can I do, could I ask the home equity people to take the title. could I somehow get a secured loan on it and pay for the new septic I need done with the money I get for it- as obviously I won't be able to get any loan for the septic which will cost about 16,000.00.

I need some appropriate creative ideas here.

[drowningNdebt]

They will be looked at as assetts and sold so the money can be distributed over to the creditors. Unless, your state has enough exemptions to cover them. The trustee will ask you under oath if you have sold or transferred anything with in the last 2 years as well.

[momofthree]

What state are you in?

What is the value of your home and the balance of your first mortgage?

Do you need all 3 vehicles?

I think the septic is a good idea, however, I wouldn't want to do that too close to filing. When are you planning to file?

[Simbor]

Next month for sure- I've already, ask the guy who is to do my septic if he would take car in trade and I would come up with the rest of the money in installments. I'm in NH- because of the second and third mortgages I'm about even with value to loan on the house. I'm able to keep the payments up and keep the house.
It honestly, would be the only way to get the septic paid for at this time. The reason why it is so more attractive to me, is that I know I could easily buy the car back in a year or so from the septic guy if I could ever come up with the money- which I would hope I could.

[justbroke]

I used a home equity loan at 5% to purchase it- 22,000.00. I use it as my daily driver and have a 200.00 monthly equity payment I pay on it. I'm going to go chapt. 7; However, in the eyes of the Bankruptcy court the car looks paid up.

The car IS paid up. There is no lien against the car. You purchased it with a home equity loan, so you encumbered your home, not the car.

You are in a tough spot. You will probably lose one or more of the cars, unless you buy them back from the Trustee.

[Simbor]

The car IS paid up. There is no lien against the car. You purchased it with a home equity loan, so you encumbered your home, not the car.

You are in a tough spot. You will probably lose one or more of the cars, unless you buy them back from the Trustee.

Well, obviously- what I'm trying to do is figure out who to be appropriate and creative. I still have wild card in NH, I'm trying to figure out how to best use it. If I sell the cars what I can pay off- then maybe rebuy in the future.

[justbroke]

Well, obviously- what I'm trying to do is figure out who to be appropriate and creative. I still have wild card in NH, I'm trying to figure out how to best use it. If I sell the cars what I can pay off- then maybe rebuy in the future.

These are questions for an asset protection specialist that understand NH bankruptcy. The reason is, you may be able to sell the assets and bury the money into a 401(k) or other exempt source. However, this would need to be done carefully and the asset protection attorney would look to precedence in your District/State to determine what's going to be challenged.

Shuffling assets around is the key area where debtors get into trouble. Whenever you transfer assets in order to delay, hinder, or defraud creditors, it gets into an area where careful asset planning is important. Since you have a lot to lose, literally, you should get an asset protection professional capable of helping you.

I don't want to sit here and tell you to sell two of the cars and park the money in an IRA. That type of advice can get you into more trouble than it's worth. That type of advice should come from a qualified person.

I can only tell you that you have issues and that you really need professional advice.

[Simbor]

These are questions for an asset protection specialist that understand NH bankruptcy. The reason is, you may be able to sell the assets and bury the money into a 401(k) or other exempt source. However, this would need to be done carefully and the asset protection attorney would look to precedence in your District/State to determine what's going to be challenged.

Shuffling assets around is the key area where debtors get into trouble. Whenever you transfer assets in order to delay, hinder, or defraud creditors, it gets into an area where careful asset planning is important. Since you have a lot to lose, literally, you should get an asset protection professional capable of helping you.

I don't want to sit here and tell you to sell two of the cars and park the money in an IRA. That type of advice can get you into more trouble than it's worth. That type of advice should come from a qualified person.

I can only tell you that you have issues and that you really need professional advice.

Thanks Really; this is the advice I am looking for. Should my Bnkrpsy attorney be the asset protection specialist or is that a totally different specialist?

[justbroke]

Thanks Really; this is the advice I am looking for. Should my Bnkrpsy attorney be the asset protection specialist or is that a totally different specialist?

Many bankruptcy attorneys are also asset protection specialists. When interviewing your attorneys just ask them if they are good at asset protection and explain your situation.