Is a 2nd Car Exempt?

[Fallonedward]

As I'm researching a Chapter 7, I came across this info that a 2nd car or truck in Non-Exempt. I have just recently purchased via a loan my 3 year old lease car, I have 3 years worth of payments left on it. The hubby has just paid off his 8 year old car.

Question: Will we have to give up the hubby's paid off car in chapter 7 bankruptcy?

I went to a bankruptcy site and pulled the info below and that is what got me nervous. Just when I think I have one aspect figured out something else pops up


Non-exempt Property

Items that the debtor usually has to give up include:

Expensive musical instruments, unless the debtor is a professional musician.
Collections of stamps, coins, and other valuable items.
Family heirlooms.
Cash, bank accounts, stocks, bonds, and other investments.
A second car or truck.
A second or vacation home.
Exempt Property

Exempt property (items that a debtor may usually keep) can include:

Motor vehicles, up to a certain value.
Reasonably necessary clothing.
Reasonably necessary household goods and furnishings.
Household appliances.
Jewelry, up to a certain value.
Pensions.
A portion of equity in the debtor's home.
Tools of the debtor's trade or profession, up to a certain value.
A portion of unpaid but earned wages.
Public benefits, including public assistance (welfare), social security, and unemployment compensation, accumulated in a bank account.
Damages awarded for personal injury.

[newbie2]

As I'm researching a Chapter 7, I came across this info that a 2nd car or truck in Non-Exempt. I have just recently purchased via a loan my 3 year old lease car, I have 3 years worth of payments left on it. The hubby has just paid off his 8 year old car.

Question: Will we have to give up the hubby's paid off car in chapter 7 bankruptcy?

I went to a bankruptcy site and pulled the info below and that is what got me nervous. Just when I think I have one aspect figured out something else pops up


Non-exempt Property

Items that the debtor usually has to give up include:

Expensive musical instruments, unless the debtor is a professional musician.
Collections of stamps, coins, and other valuable items.
Family heirlooms.
Cash, bank accounts, stocks, bonds, and other investments.
A second car or truck.
A second or vacation home.
Exempt Property

Exempt property (items that a debtor may usually keep) can include:

Motor vehicles, up to a certain value.
Reasonably necessary clothing.
Reasonably necessary household goods and furnishings.
Household appliances.
Jewelry, up to a certain value.
Pensions.
A portion of equity in the debtor's home.
Tools of the debtor's trade or profession, up to a certain value.
A portion of unpaid but earned wages.
Public benefits, including public assistance (welfare), social security, and unemployment compensation, accumulated in a bank account.
Damages awarded for personal injury.

If you are filing a joint petition you both are allowed a car to exempt.

[Fallonedward]

If you are filing a joint petition you both are allowed a car to exempt.

Newbie, you have helped me more than once, thanks so much...I literally work up at 4am worrying about this...ugh

[contest]

Question: Will we have to give up the hubby's paid off car in chapter 7 bankruptcy?

Non-exempt Property

Items that the debtor usually has to give up include:

Expensive musical instruments, unless the debtor is a professional musician.

This has me a bit concerned. All three of my children play. One trumpet, on saxophone, and the other percussion. None of their instruments are valued over about $500 individually, and between my wife and I, we have $8000 exemption which more than cover our assets, but would the trustee, and I really think I know the answer to this, but would the trustee actually force sale of the childrens musical instruments? And I am right in thinking that we should be fine?

[newbie2]

This has me a bit concerned. All three of my children play. One trumpet, on saxophone, and the other percussion. None of their instruments are valued over about $500 individually, and between my wife and I, we have $8000 exemption which more than cover our assets, but would the trustee, and I really think I know the answer to this, but would the trustee actually force sale of the childrens musical instruments? And I am right in thinking that we should be fine?

It sounds like the musical instruments are your childrens instruments. If so, then you have no worries. As always, ask your attorney to be sure about what is normal in your state /district.

[mrskal]

It really depends on your state, did you look up your states exemptions, the thing you posted seems very vague.