How many cars are you allowed??????

[littlemuffin]

Had a meeting with my attorney today - he had a question about claiming two cars. I am a single mom with a 16 year old son. Since he has started driving it has enabled me to work more and at least break even.

What is your opinions about allowing both of the cars? One car is 9 years old and the other is relatively new.

Thanks

[AngelinaCatHub]

Do you have a loan on the newer car? If so, that is fairly safe. A nine year old car MAY be abandoned. Hope for that. Protect the car you wish to keep with whatever exemption you state allows. I think you will be ok. 'Hub

[brokejoker]

As long as you have exemptions to cover them they should be fine. We had three cars and two drivers and exempted them all.

[rdknipp]

There are two big issues with vehicles.

The first is how much equity. That's a simple valuation and application of exemptions - like brokejoker said, as long as you have the exemptions you are fine.

The second is evaluated on a reasonable and necessary standard. Its not so much about how many cars one might have. In my district, you can split up your car exemption on as many cars as you want - you could have 5 cars for 1 driver if you wanted. Its more of an evaluation pertaining to how much you pay a month towards your vehicles and is that reasonable and necessary that you continue with those payments as opposed to paying your unsecured debts. With two drivers and two cars - one of which is nine years old and probably has little to no payment - it will pass the test.

[tcreegan]

Hi littlemuffin,

We exempted 4 vehicles and my wife doesn't even drive...as the others said, the equity is what matters. If you have less than the WV exemption ($2,400 I think) you should be fine. (and if you need more exemption, you can use any unused homestead exemption)

With a 16 yr old driving, I think you should get some extra exemption, extra patience, extra something....my older kiddo managed to get into 3 fender benders and found the curb hard enough to ruin the rim and tire on three other occasions....I think that is were all my grey hair came from...

Tom in Colo

[littlemuffin]

My attorney was concerned with the allowance for expenses with the vehicles on schedule I. I have enough exemption to cover the vehicles. The newer one is still underwater and the other one is worth $5000.

I can't imagine it being considered unreasonable to have the expenses for both vehicles. But I just wanted some other opinions since it was the one area my attorney mentioned.

Thanks!!