Equity in my car

[river147]

Need some advice please. I will be filing chapter 7 and I live in missouri. I have one vehicle I own out right. It's worth about 12k according to the local appraiser. I was advised to get a title loan against my car but my credit is shot so I'm not sure if I even qualify for that. How can I take advantage of the car exemption in missouri and get another car without getting in trouble with the trustee.

Can I trade my car in and get a newer car with a lien on it?
should I sell my car for cash, take part of the cash and put it down for a new car? Then pay sales tax, tags, and legal fees with the remainder of the money.

Not really sure how to handle this. What should I do to get rid of all this non exempt equity in my car so the trustee won't take it.

[Skinsfan]

I'm in the same position. VA exemption is only $2,000. KBB and NADA have my vehicle @ $8,000 (trade-in) to $14,000 (retail).

One possibility I am looking at is a lease with a buy down.

If the advertised lease is $399/month w/ $2,500 down, you could use the equity in your car to buy down the lease. Instead of giving them $2,500 and getting a lease payment of $400/month, give them extra money up front (in my case $8,000) and get a lease payment of $250/month.

Trying to figure out if I did this whether I would need to wait 60 days, 90 days, or longer for it to be accepted by the trustee.

[river147]

still not sure about how to handle the equity in my car

I'm in missouri. our car exemption is $3000. I think wildcard exemption is another 1600. A lease buy down sounds great but can I do that 30-60 days before filing? Since my credit is shot, I would have to have my hubby co sign as he will not be filing. Let say my car is worth 12k trade in value. So I lease a car worth 30k, trade in 12k, and make payments on the remaining balance.
Will this be clean with the trustee? Does anyone here have any advice how to handle the non exempt equity in my car?

[Skinsfan]

Check link...

http://www.bkforum.com/showthread.php?t=19837

[river147]

what to do with the non exempt equity in my car?

I own my car out right. It's worth 12K. My missouri exemption is $3000. And I can possible add another $1400.00 wildcard exemption on top of that.
Someone offer to buy my car for 10K. what should I do with the cash as far as getting me another car and yet keep it clean with the trustee???