Retaining vehicle

[minibux]

What are the standard policies of retaining a vehicle in a Chapter 7? I know this is general, so anyone feel free to give advice!

[minibux]

Anyone?

Maybe if I was a bit more detailed? We are well below the median, and have 2 vehicles. A 2001 Camry that we owe $800 on still. A 2008 Impala that we owe $20k, worth about $16500. Based on the little I know, we would be safe to save both? Since we owe more than the Impala is worth, and the Camry is only worth about $5200 minus what we owe (totaling $4400).

Any input?

[Shawshank]

I would say you would be wise to reaffirm your Camry since it's almost paid off.
However, I would suggest an honest evaluation and ask yourself if it's really smart to keep a car that you owe $20k on that is already under water.

Are they financed by the same bank or is the Camry otherwise cross collaterized?
Do you have exemptions to keep the camry (since you have equity?)

These questions will help you make a decision.

[minibux]

As far as keeping the vehicle thats under water, its the dependable of the 2 cars.

What do you mean do I have exemptions to keep the Camry? There is still alot I dont know in regards to all this lingo, sorry

[StartingOver08]

Look up your allowed exemptions under your state. For example, here in Fl we can exempt $1000 in vehicle equity. That's it.

You have stated you have $4400 in vehicle equity in your Camry. In Fl you would have to either surrender the vehicle to the Trustee or buy back the excess equity from the Trustee if in fact you have $4400 in equity. The Trustee would have to give you the $1000 allowed, but keep the rest for the BK estate to pay creditors.

The next question is, how did you determine the vehicle value? Check with your attorney as to the valuation method used in your district.

So check here under your state for your allowed exemptions: www.legalconsumer.com

[SMinGA]

There are 2 aspects to consider...

For vehicles with active loans, are you current? If not, the automatic stay is only temporary. Creditors can file to lift the stay OR wait til its over, then repossess. If you ARE current, you will probably not need to worry about repossession if the payments up to date.

The other aspect is equity. As already pointed out, each state allows a certain amount of vehicle value to be exempt. Exempt = safe to keep. If your state has a low vehicle exemption, then it may be a problem.

And as pointed out - this is a time to carefully consider your options. Do you really want to keep (and can you afford?) a vehicle where you owe $20,000?

[SMinGA]

I looked at your other posts, saw you live in OH.

From what I can find on OH exemptions - it is $1,000 for a vehicle. If you are married/filing joint you may be able to double that. You'll need to discuss in detail with a local attorney. If you can double it ($1,000 x 2) you'll want to ask if the total can be claimed on a single vehicle. Also ask what method of valuation your district uses. NADA? Kelley Blue Book? Retail value? Trade-in value?

[minibux]

Thanks for your help! We are current on the car payments. We plan on keeping the Impala, it is our sole source of transportation for our family. The payments are actually not that bad. We opted to do a 6 year loan to keep the payments under 315/monthly.

I guess now I need to call my attorney and ask a ton of questions.