Has anyone paid Trustee to keep your car?

[drowning123]

If the car is valued at 13,700 and you only owe 7,500 then you have equity of about 6K. What you want to find out is what your interest rate on the loan and what the actual payoff is on the loan. If you owe 7500 then part of the payment you pay each month goes towards interest and part of the payment goes towards actual payoff. If your payments are 417 a month and you have an interest rate of 11% then each month you are paying 130-140 in interest. The other part is going toward the balance. So how much you owe does not change, but it will effect how much equity you actually have in the car. If the car is 13.7 and you have about 7.5 left then subtract how much of the interest is left on the loan. Now subtract that number from 13.7 and that is how much equity is left in the car that you have.

Example
13700 car value
7500 loan amount
15% interest left on the loan 1125
6375 is the principle balance left on the car
13700-6375 = 7325 in equity is what you would have on the vehicle.

Scratching head

[despritfreya]

In response to:

"Example
13700 car value
7500 loan amount
15% interest left on the loan 1125
6375 is the principle balance left on the car
13700-6375 = 7325 in equity is what you would have on the vehicle."

Wouldn't just be easier to call the lender and ask for a payoff quote and then subtract that from the value to calculate equity, or lack thereof since most of us are upside down? I hate math.

[Exployer1234]

You would think, but if you read on the paperwork you signed there is a mathematical equation they use. Using simple addition and subtraction will not get the exact answer you are looking for. I hate doing mathematical equations, but it is a fact of life now. I have to admit I hated taking stats in college, but it is coming in handy in figuring out financial formula's.

[Exployer1234]

Here is a website that explains a little bit about the formula
used.

http://www.vertex42.com/ExcelArticles/amortization-calculation.html

[despritfreya]

"Here is a website that explains a little bit. . ."

Okay, that is just way tooooooo much information overload.

[Exployer1234]

I said the same thing when I read my loan app for my car that I had financed. Maybe I should have taken it to a local college and had the professor explain it to me in simple terms. I doubt I could even work that formula. I guess that is one good thing about having computers input the formula for you.

Also I think companies use this formula to confuse people. Most people could not read these formula's, much less try to calculate the proper answer. I would pull my hair out if I had to work in the financial sector.

[tcreegan]

tiny vehicle exemption

Hi 2bdebtfree,

What state are you in that has such a measly vehicle exemption?

Hi ferfermom,

WA has a $2,500 vehicle exemption (doubled if filing jointly) ...and WA is one of the nice states that allow you to use federal exemptions...where the vehicle exemption is $3,225 (doubled if filing jointly)

Hi all,

Some of the discussion triggered a thought....if the trustee sells the car at a public auction...my experience w/ car auctions around here is that cars sell for about 1/2 to 2/3 KBB value (unless it is a special classic, sports car, or something)....maybe this is why some folks pay a fraction and get the car back?

Just a thought,

Tom in Colo

[2bdebtfree]

I live in Massachusetts. The homestead is $500,000 but the vehicle exemption is $700. I need to protect the equity in my home. We have no wildcard here to put the car in.

Hopefully, I can get a used car dealer to value my car lower and the Trustee will accept that amount instead of KBB value.

I retained my attorney yesterday. Should file in December.

[AJA]

I had a paid off 3 year old car which I couldn't compleatly exempt. Book value was 8500.00 exemption was 2500.00 difference of 6000.00 I offered the trustee 4000.00 over 10 months. He accepted. All this was done through my attorney. It's now mine again and will go to my daughter when she graduates college. I held the title with no lein throughout the entire payment process. Offer two thirds of the non exempt value. Trustee should accept. My case is still open some 300 days since my discharge due to a land asset that may never sell. I might buy that back too if its not abandoned back to me. Full story when I'm closed. By the way there is no intrest paid to the trustee.

[tcreegan]

Massachusetts

Hi 2bdebtfree,

If you had me guess which state had a $700 vehicle exemption, MA would not even make the list. They seem so good about consumer protection!

Tom in Colo

[2bdebtfree]

tcregreen - i know hun. But's that what it is.

[Fallonedward]

Hi 2bdebtfree,

What state are you in that has such a measly vehicle exemption?

Hi ferfermom,

WA has a $2,500 vehicle exemption (doubled if filing jointly) ...and WA is one of the nice states that allow you to use federal exemptions...where the vehicle exemption is $3,225 (doubled if filing jointly)

Hi all,

Some of the discussion triggered a thought....if the trustee sells the car at a public auction...my experience w/ car auctions around here is that cars sell for about 1/2 to 2/3 KBB value (unless it is a special classic, sports car, or something)....maybe this is why some folks pay a fraction and get the car back?

Just a thought,

Tom in Colo

[tcreegan]

higher exemption

Hey Fallonedward, that is good news, a higher exemption amount!

Tom in Colo